• Maggoty@lemmy.world
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    11 months ago

    Selling at a loss to enter a market or gain market share is a time honored tradition at this point.

    • Hyperreality@kbin.social
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      11 months ago

      It is, but as the article mentions some manufacturers are making a loss of 35k per car.

      If those cars are then sold for 5k less than the US/EU/Japanese equivalent, despite lower wages and environmental standards, you have to ask yourself questions.

      • Maggoty@lemmy.world
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        11 months ago

        Yes you just described the business model. Everyone from Walmart to Amazon to Uber uses it. They take a loss in the short term, relying on new investor money or other products.

        • Corkyskog@sh.itjust.works
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          11 months ago

          Or they could be building economies ot scale? You can’t drive down costs making thousands, you need to make millions.

          • Maggoty@lemmy.world
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            11 months ago

            That’s possible too. It’s not like the US doesn’t give businesses loans and grants for upscaling.