Tesla reported second quarter results earlier this month. Despite losing $718 million during the quarter, Tesla shares rose 16 percent on renewed promises of profitability. Driven by government incentives and mandates, world automakers have announced big electric car introduction plans. But will any electric car firm be able to make money?
. . . Plug-in hybrid electrics, such as the Chevrolet Volt, can plug-in and run wholly on electric batteries but also use a gasoline engine for longer trips. Battery electric vehicles, such as the Tesla Model S and the Nissan Leaf, are fully electric and run only on batteries. Neither plug-in hybrid electrics nor fully electric vehicles are yet profitable.
UBS analysts estimate that General Motors loses $7,000 on every one of its new Bolt battery electric cars. The Bolt battery pack costs about $10,000$12,000, or up to one-third of the Bolt price tag. Daimler, Peugeot, Honda and other auto makers warn of looming electric car losses.
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