Comment on Fisker reaches end of the road and files for bankruptcy

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Dudewitbow@lemmy.zip ⁨4⁩ ⁨months⁩ ago

its a how many you can produce vs margins situation. not many companies want to take the risk on a high production low margin product, as failure would put you soo deep in the red that you wouldnt come out unless your first product knocks it out of the park.

its why moat. conpanies are doing the top down approach (e.g Tesla, Rivian) where you cater first to the high margin vehicles and then make your way down. given the sales of cars like the chevy bolt and nissan leaf, people are picky about cars they buy, and the problem new car companies have is the one that vinfast has, which is “would an average consumer buy a new cheap car, or a used premium car” and its usually the latter.

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