Why Car Companies May Lose $6,000 On Each EV Sold For $50,000

For automakers small and large, old and new, transitioning to a mostly electric future has not been an easy endeavor. Or a cheap one. With the established 'legacy' car companies, this has meant ramping up battery and software operations—and learning to make EVs correctly—while keeping profits up by selling gas-powered cars.

Now subtract the ICE powertrain, which Loh said is around $4,000 per vehicle. 'That's what gets you to minus 10% , or minus $6,000, as opposed to plus $6,000 profitability.' In other words, it just comes down to high capital costs right now in the early stages of EV development, being built at operations that aren't yet fully at scale. There are obvious exceptions to this, of course.

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