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by jacquesm 3576 days ago
It's easy to undercut another company if you're willing to make a loss.

If Tesla reaches profitability you can bet there will be a lot of other EVs on the road within two years from that point precisely for the reasons you listed in your first paragraph.

1 comments

There been some dry spells for Porsche as well, when it was losing on the order of billions within a year. This does not reflect to maturity of internal combustion engine technology or viability of luxury vehicle business of Porsche.

That statement connected two non contradicting issues. Porsche could make that premium electric car, and it could stay in black.

Yes, they probably could. But the question really is whether or not they'd make a profit on that premium electric car. In other words, if they'd cross-subsidize from other income then quite probably Porsche as a whole would still be in the black but that doesn't mean they're turning a profit on the EVs, you'd have to break it out in order to establish that.

Based on the quote from the article my guess would be that they would not be making a profit on the EVs.