When do startup EV manufacturers turn a profit?
With the recent spate of profit warnings and failures by start up EV companies, coupled with the well-publicised lack of profitability at the EV divisions of major OEMs, we thought it would be interesting to investigate how long the runway is for new EV startups and if there are any trends in terms of when they move from unprofitability to being cash flow positive? We conducted an analysis of six EV businesses to calculate what their profit (or loss) per unit is over time. We then compared the relationship between quarterly vehicle sales and profitability and found: 1) A pretty...
Topics
EVs
Fixed cost base
profit
Volumes
