If carmakers have any hope of making money on electric vehicles, they’ll need to re-think how they design and sell them, a new McKinsey study suggests.
Why it matters: Automakers will pour $255 billion into EVs by 2023 but are resigned to losing money on them for the foreseeable future — an expected outcome of a market dictated by regulators and lawmakers, rather than consumers. But because they’re key to future self-driving cars, they’ll keep investing in them.
The big picture: Right now, electric vehicles are an expensive black hole for carmakers.
Continue reading… “Billion-dollar bets on electric vehicles await payoff”