[labcomputer]

> If a single manufacturer steps out of line and lowers prices, they will carry more volume, and therefore more revenue.

How will they do that? Every one of them is production-constrained right now.

> Manufacturing costs do not increase when subsidies are introduced. EVs, as a result, have higher profit margins.

Now you're getting it!

> Therefore, this will result in enticing more firms to enter a more lucrative market, resulting in more EV sales, which really, isn’t that the goal of subsidies in the first place?

Sure, but it takes 5-10 years to design a new EV and spin up a plant. Will the subsidies still exist by then? (Probably not, because we are in the exponential phase of the EV adoption curve, so the subsidy will quickly become unsustainable).