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Technology Stocks : The Electric Car, or MPG "what me worry?" -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (343)	9/16/2008 8:35:08 PM
From: TimF	Read Replies (2) \| Respond to of 17575

If they can produce it in small numbers without the cost per unit going way up, than maybe it could serve a small niche, but the thing is even in the enviro-niche it will have competition, so I think your right. Its hard to compete with a Civic like car at those prices. Some people might pay thousands extra for it, but tens of thousands? It either needs to dominate this micro-niche without unit costs going up, or it needs to be competitive in a bigger niche, and its starting to seem like neither might happen.

To: John Koligman who wrote (343)	9/17/2008 8:44:56 PM
From: RetiredNow	Read Replies (1) \| Respond to of 17575

Pricing will remain high in low volume. Once they scale up the manufacturing process, then prices come down. Economies of scale. I imagine that GM will be selling this thing at a loss for a couple years, before they reach volumes that can make it profitable. Plus, they will have to continue to invest to bring part costs down. That's what Toyota does and it has worked for them for a very long time. The Prius was not profitable when it was first introduced and remained that way for 5 years. Now look at them.