I mean theres a couple of layers to it. One, they don't have the production capabilities to mass produce yet. They were able to produce ~25,000 in 2022 and then ~58,000 in 2023.
Two, the margins tend to be low on cheaper models which means you need to sell more. For a brand new company that needs to set up its own production line in addition to design, engineering, etc. it's a lot of money to burn through.
It also gives them time to fix issues and figure things out so they aren't recalling a million vehicles, but a much smaller set instead. These companies aren't going to get everything right the first time so going to the mass market off the rip would be suicidal.
If they make it through the next couple years or so, we may begin to see a much more affordable price point from these new EV companies
I mean theres a couple of layers to it. One, they don't have the production capabilities to mass produce yet. They were able to produce ~25,000 in 2022 and then ~58,000 in 2023.
Two, the margins tend to be low on cheaper models which means you need to sell more. For a brand new company that needs to set up its own production line in addition to design, engineering, etc. it's a lot of money to burn through.
It also gives them time to fix issues and figure things out so they aren't recalling a million vehicles, but a much smaller set instead. These companies aren't going to get everything right the first time so going to the mass market off the rip would be suicidal.
If they make it through the next couple years or so, we may begin to see a much more affordable price point from these new EV companies