Re:Rivian Loses $33K on Every Truck It Sells: Report
by Paul-Craft on Wednesday October 04, 2023 @05:59PM
(#37772387)
> edit to add: the article claims the main reason for them losing so much money is lack of throughput, which demonstrates that the claim is bullshit. If they made even more cars and "lost 30K" on each one they'd be worse off.
Hah! I knew I wasn't the only one who noticed that. It's like the old joke:
> Q: How do you expect to stay in business if you lose money on every sale?
> A: Easy. We'll make it up on volume!
More seriously, a production line has huge fixed costs associated with it, so you really need to get the most throughput out of it that you can, in order to maximize profits.
Hah! I knew I wasn't the only one who noticed that. It's like the old joke:
> Q: How do you expect to stay in business if you lose money on every sale?
> A: Easy. We'll make it up on volume!
More seriously, a production line has huge fixed costs associated with it, so you really need to get the most throughput out of it that you can, in order to maximize profits.