Quote:
Originally Posted by Chance
Let’s set charging inconvenience aside for now. The issue is that commodity prices for whatever is in short supply has “unexpectedly” made prices so much higher that profit is no longer what was projected. I’m not clear on whether this is due to copper, lithium, nickel, or whatever. Probably a combination. It does appear that costs are going up faster than inflation, so likely caused by market forces due to shortages.
Considering that electric vehicle manufacturing represents a small percentage of total, question I think is whether commodity prices can be lowered enough by increasing supply while at the same time using a lot more annually for the foreseeable future?
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Let's be honest... the logic behind raising prices because of short supply is driven by greed and NOTHING else. The thing is, people have come to accept price gouging as a normal part of "doing business". I'm not taking a loss... I want to feed myself, so no soup for you! In reality, it's the SAME concept as letting your friend drown because you don't want to risk your own life attempting to save them. NO different at all, except what society has taught you.
Rather than some random spot in the supply chain, let's start at the SOURCE - for instance a lithium mine. Less lithium is being mined (the reason doesn't really matter) so lithium is in "short supply"... SO? Two choices - sell what you have at the current price - OR jack the price up (gouging) to make up for lost profit from "short supply". The sick logic goes... The business owner can't afford to "take a loss", so pass it on to the next guy. EVENTUALLY the consumer at the bottom of the food chain gets burned.
For "wants", who cares? Consumers have a choice of not buying the "price gouged" goods or services. HOWEVER, when price gouging affects basic food staples - uhhh... baby formula and such, you realize the rot and corruption allowed to fester in our "system".
That's a simplified version of the root of "inflation", which is just a polite word for price gouging. It's NOT the money supply, the FED and all those other distractions... it's simply a decision a person made based on greed... PERIOD.
In this case, Ford purchased components from a supply chain which originated with a person choosing to raise prices dramatically - that greed element. In this case, consumers have an easy choice... DON'T buy, and leave Ford stuck holding the bag. In simple terms, had the original purchaser of the lithium said NO to the purchase...