EV sales aren't going downhill

[John From Detroit]

In freshman economics we learned manufacturers ordinarily lay thousands of people off when sales are increasing.

Sadlly today that is often true you see by restricting supply they can increase price and thus Profit. It's the Greed theory of Economics. Makes no sense to me. I'd rather sell more and increase profits that way.

 

[Mark_K5LXP]

by restricting supply they can increase price and thus Profit

[Production engineer hat on] The other side of that is manufacturing capacity. You don't want to invest/spend to expand capacity to meet a fleeting demand, then be stuck with overhead and layoffs on the other side of the peak. Many industries today consider the workforce to be expendable and to some extent there needs to be some dynamic adjustment for any product. A company that ramps up too quickly may end up bankrupt where the one that adopts measured growth may miss out on volume sales but could be the one left standing when the market settles out.

Mark B.
Albuquerque, NM

 

[John From Detroit]

[Production engineer hat on] The other side of that is manufacturing capacity. You don't want to invest/spend to expand capacity to meet a fleeting demand, then be stuck with overhead and layoffs on the other side of the peak. Many industries today consider the workforce to be expendable and to some extent there needs to be some dynamic adjustment for any product. A company that ramps up too quickly may end up bankrupt where the one that adopts measured growth may miss out on volume sales but could be the one left standing when the market settles out.

Mark B.
Albuquerque, NM

I agree with you there but if you are laying off . then you have already invested and expanded \so the layoffs are to reduce production and increase price.

 

[Onyrlef]

I agree with you there but if you are laying off . then you have already invested and expanded \so the layoffs are to reduce production and increase price.

That's not even the reason for industry layoffs.