American Economics Thread

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victoon

Junior Member
Registered Member
horse said:
Sometimes these threads read like alternate universes.

Never heard such stuff in my life!

Here is a picture.

Notice something here? The biggest US corporations, outside of oil, they all there because of the Chinese manufacturing. Without China, they would have never succeeded to this extent.

Compare-US-Chinese-Largest-Companies-1-e1706038288877.png



I tried to find the number of Chinese companies and American companies on that Fortune 500 list, but could not readily find it.

That is what happens when information does not fit their narrative, the data is suppressed.
Click to expand...
I am surprised by how different it is from stock market capitalization, even among tech companies.
 
B

BlackWindMnt

Captain
Registered Member
manqiangrexue said:
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"Model e all-electric unit reported first quarter losses that exceeded USD$1.3 billion on falling sales of just 10,000 vehicles in the US and Canada, which itself was down 20% from the same time last year.

that works out to a whopping $132,000 for each EV sold in the quarter. That’s more than triple the $40,525 it lost on each electric car and truck in the same quarter of last year.

In a statement, Ford attributed the losses to price cutting — revenues were down about 84% to $100 million. Ford now expects full year losses in the division to surpass $5 billion.

But analysts said the losses go far beyond the mere cost of building and selling those 10,000 cars and tracks. Instead, they include hundreds of millions of dollars being sunk into research and development."
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How does one lose like an second hand supercar worth per sold ford EV that's super weird...
How the mighty have fallen.
 
O

Overbom

Brigadier
Registered Member
BlackWindMnt said:
How does one lose like an second hand supercar worth per sold ford EV that's super weird...
How the mighty have fallen.
Click to expand...
It all depends on the quantity and price of sold cars.

Costs include R&D, material, labour costs. Then you have factory/land acquisition costs etc
All these costs have to be amortized with each sale. So if Ford doesn't sell enough cars, that's the kind of losses you incur.

That's why in China you see all sorts of partnerships, JVs between EV startups and traditional automakers. Building cars is extremely costly
 
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BlackWindMnt

Captain
Registered Member
Overbom said:
It all depends on the quantity and price of sold cars.

Costs include R&D, material, labour costs. Then you have factory/land acquisition costs etc
All these costs have to be amortized with each sale. So if Ford doesn't sell enough cars, that's the kind of losses you incur.

That's why in China you see all sorts of partnerships, JVs between EV startups and traditional automakers. Building cars is extremely costly
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I get this but it sounds so extreme and not sustainable no wonder the US government has to open their purse.

Mind I don't have any business experience etc.
 
C

chgough34

Junior Member
Registered Member
BlackWindMnt said:
How does one lose like an second hand supercar worth per sold ford EV that's super weird...
How the mighty have fallen.
Click to expand...
Manufacturing exhibits increasing returns to scale: there are substantial fixed costs associated with manufacturing 1 unit or 100,000 units and thus at low sales volumes, they are unable to effectively capture fixed costs. At higher sales volumes, they will be able to capture fixed costs as well as variable costs; profitability increases *exponentially* with linear increases in volume; the reverse is similarly true, probability decreases *exponentially* with linear decreases in volume
 
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