The withering dream of a cheap American electric car

Something has to disconnect here. Everyone complains that everything costs so much, but the average Americans' paycheck is not rising the same way, so they can try all they want to sell $95k electric vehicles because of thin margins for cheaper products, but if purchasing power doesn't rise with inflation, then that market that "sucks" is going to be the only real market one day...

Yeah, I think the pendulum swings back and forth. My recollection of the 2007-2009 recession, with $4 gas and the failure of GM, was that it spurred a lot of interest and innovation in smaller, more efficient, economy cars after many years of the automakers pushing (and people buying) larger and less efficient trucks and SUVs. I think we're at an extreme point in the cycle again now with American automakers all but abandoning the compact and midsize economy car segments. At some point, things will dry up and they'll need to compete with the Toyota Corolla and Honda Civic again.

I think you're right about pendulums here, but we might be about to see a US auto maker vs China auto maker inflection point like I read about in the 1980s with US vs Japan.

I watching this video which lays out some fundamental diffs between US companies, like GM and Chinese companies, like BYD: https://www.youtube.com/watch?v=PXvcwM977D0 * Short term vs long term focus * .gov subsidies stronger in key markets in CN * CN companies extremely rapid in development (as low as 1.5 yr vs 6 yr in the US) * Lower wages and input costs

Things will probably have to get worse before they get worse. Corporate people know the machine (public traded US auto makers) keeps lumbering forward without change until it can't, and all handouts, bailouts, and other tricks have been played.

There's only one reason why US cars are more expensive than CN cars: People will pay it. All that other stuff is window dressing. The US is way, way better at financial engineering than China; we can sell an $80,000 Tahoe to a single mom between jobs on zero down and 10% APR, somehow she'll take that deal, and somehow the system doesn't explode into a fiery deathball; so you get $80,000 Tahoes. That's it.

Short-term vs long-term focus means nothing. Government subsidies run out. Rapid development is easy when its a first generation product with no customers. Lower wages means fewer of your own people can afford it (though it does help with export pricing to richer first world countries... what's that word I'm looking for... it starts with a T, I heard an orange man say it recently. eh probably nothing)

The 2008-2023 US economy was basically the strongest national economy in the history of humanity; but, obviously, that's changing. And no, I'm not doomering about a mother-of-all-crashes. The world is just getting more realistic, as it should.