Does Toyota lose money with each Prime sale?

i would say the same goes for all plug ins, and the government is in the business of choosing sides.

 

Tesla... the Amazon of the car world (or at least Musk hopes it will be). But in this case all of use are the investors, we just don't make any money for our investment

 

That's a generalization based on what?

We know for a fact that Toyota's battery choice for the initial offering of Prime gave cost-containment high priority. They specifically told us that the packing decision was to keep it affordable. So, even though it could be small, expecting profit is realistic. That is key to sales. Toyota would like to achieve high-volume with this generation. First year sales of 51,000 put them on the right track for that.

In short, not all plug-ins.

 

if they were making a profit, they would be pushing them harder. it's just common sense.

also, i was replying to a comment that tesla's were not profitable without government incentives.

 

Not necessarily...They may be making a larger profit on other vehicles so even though they may make a smaller profit on a prime, they still prefer you buy some higher margin vehicle and push them instead.

 

That's not how relations with suppliers work. Both the economics & accounting require careful planning of allocation ahead of time. Dealers won't order more until demand is well established either.

 

i'm told they are sitting on the lots in cali.

 

Market distribution is part of that equation. Sending out 2017 models to new markets at year-end would be a costly mistake.

 

and we know that carb credits and hov stickers play a big part in cali and carb state sales.

 

More bang for your buck in year-1.

Mitigating risk is a good plan too, basic Econ-101 stuff.

 

exactly my point.

 

I recall attending a public hearing concerning the local transit authority. The statement was made that the system was losing money on every rider.

One of the audience members had a simple solution: "If you're losing money on every rider, you should try to carry fewer riders."

Seems logical.

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when i waist business, the only thing that mattered was npbt, but i understand multinational auto mfg's have a more complicated scenario.