There is a fundamental truth you have to understand about car companies:They do not exist to make cars. They exist to make money. That distinction, analyst Kevin Tynan tells me, is why they’re not really interested in making affordable electric vehicles.

Perhaps that’s an oversimplification. Tynan is the director of research at an auto-dealer-focused investment bank, the Presidio Group, with decades of experience as an analyst at firms like Bloomberg Intelligence. What he means isn’t that automakers have no interest in affordable products. It’s that their interest begins and ends with winning customers who will eventually buy more expensive, higher-margin products.

One of the auto industry’s dirtiest secrets is that at scale, it doesn’t cost that much more to make a bigger, more expensive than a smaller and cheaper one. But they can charge you a lot more for the former, which makes this a game of profit margins and not just profits. In recent years especially, that’s a big part of why your new car choices have skewed so heavily toward bigger crossovers, SUVs and trucks.

  • tyler@programming.dev
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    4 months ago

    It’s not. I own a very nice EV. I can make arguments for and against both EVs and ICE vehicles. If you are comparing battery size (which you did) then you are talking about range. If you are talking about range then you are comparing against ICE vehicles which have ranges from 350 miles to over 600. I used 400 because I own two ICE vehicles with that amount of range and one EV with 265 miles of range. The 265 miles is plenty for everyday stuff, it’s even good for road trips! But you made a comparison of weight. EVs are much heavier if they have equivalent range.

    • helenslunch@feddit.nl
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      4 months ago

      If you are talking about range then you are comparing against ICE vehicles

      I wasn’t talking about range, I was talking about weight.