Audi EVs are already profitable

Lantus · 05-10-2021 2:43pm #1

Interesting to see that Audi are already in the black from the few EVs they sell.

https://insideevs.com/news/538396/audi-ev-profits/

Given the huge simplification in manufacture and continual price decreases in battery tech the change over should lead to huge price cuts for consumers, or huge profits of course...

It's also another sign that manufacturers don't need grants funded by the tax payer. We need to incentivise car builders to innovate. Not fall back on cushy cash handouts.

Atlantic Dawn · 05-10-2021 3:40pm

One problem is post sale the maintenance costs are much lower than ICE vehicles so over the lifetime of the car the dealer will make less post initial sale.

Miscreant · 05-10-2021 3:43pm

Their electric models start near the €50000 mark.... No wonder they are making money on them! 🙂

Cyrus · 05-10-2021 3:44pm

https://www.boards.ie/discussion/2058211800/audi-evs-are-already-profitable

huge price cuts is not going to happen 😁

Ubbquittious · 05-10-2021 9:25pm

https://www.boards.ie/discussion/comment/117980226#Comment_117980226

They'll make up for it by charging you €600 to plug it into a computer and thousands for a new controller. They'll shove everything onto one PCB to make it good and expensive to replace if one part of it goes.

Perhaps they'll go down the BMW/Tesla route of "renting out" features to you and remotely disabling them if you don't keep up your monthly payments

Jizique · 05-10-2021 9:29pm

https://www.boards.ie/discussion/2058211800/audi-evs-are-already-profitable

Brands like audi and other expensive models should not get subsidies.

Given the pressure on raw mats, there is little chance of further cuts to costs for batteries as the vast bulk of battery cost is raw mats.

Finally, how much of r&d is captured in the VW parent p&l rather than that of audi.

Lantus · 05-10-2021 10:02pm

The platform this car is built on is shared with vw, seat and skoda. More cost efficiencies??

China is the biggest disruptor. The p5 is tremendous and so cheap by comparison.

It's a tough time for car builders. Analogous to music going digital.

Larbre34 · 06-10-2021 2:56am

https://www.boards.ie/discussion/comment/117980239#Comment_117980239

That doesn't mean anything if it costs 55k to build.

The same parent company charged One Million quid for a Bugatti Veyron, but lost Six Million on each.

That is however in the past and no doubt each EV is plenty profitable.

Thats ultimately what will kill Tesla, they've only begun to be profitable, so their development programme for the next gen cars isn't really happening. The big auto makers will soon have a huge range that will beat them on price, technology, quality and range, thereby eating their entire lunch.

corglass · 06-10-2021 3:31am

https://www.boards.ie/discussion/comment/117981924#Comment_117981924

I think this post will age badly.

"The competition is coming" since 2012. Tesla have the highest industry margins, no debt (look at the other ICE debt 😂) and almost completed their main capital spend for factories. Tesla are on track to be the largest, most profitable carmaker (+company) in history before 2030.

ICE have so much baggage, dealers, unions, debt, inefficient supply chains, limited battery capacity secured, very limited software capability.

Danzy · 06-10-2021 5:28am

https://www.boards.ie/discussion/comment/117980241#Comment_117980241

It would be a world first that prices wouldn't drop for new technology or products.

20 years ago very rich people were paying 30k for a very top end TV.

Now a better version can be got for under a 1k.

Cyrus · 06-10-2021 8:30am

https://www.boards.ie/discussion/comment/117981478#Comment_117981478

they already have started charging for certain things like sub for matrix headlights etc

Cyrus · 06-10-2021 8:32am

https://www.boards.ie/discussion/comment/117981967#Comment_117981967

Tvs were brand new technology cars arent. luxury mechanical wrist watches have gone up in price in 30 years despite the advent of quartz and cheaper tooling etc.

Luxury cars will remain expensive, mostly because people will want them to be!

Cyrus · 06-10-2021 8:38am

https://www.boards.ie/discussion/comment/117981933#Comment_117981933

That is a possibility but i dont think it will be the case. Teslas USP, EVs with decent range and good performance is eroded now as more and more models come out from established car makers and the quality doesnt compare. Tesla can address all that but they havent shown any appetite to so far, add that to how slow they are to refresh the model line up (the model s is 9 years old now and only recently had a facelift but same model) will go against them.

They have had one profitable year so far so lets see how they go.

Dont get me wrong id love to see them succeed long term but i am sceptical.

Danzy · 06-10-2021 10:27am

https://www.boards.ie/discussion/comment/117982306#Comment_117982306

Luxury items may be different but electric cars are not a luxury item and will continue to come down in price.

Cars are old but the electric engine is quite new.

Cyrus · 06-10-2021 10:33am

https://www.boards.ie/discussion/comment/117982765#Comment_117982765

audis, mercedes and bmws are luxury items though (or present themselves as such). they will continue to charge a premium.

I would love if i was wrong but i cant see it.

Audi EVs are already profitable

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