Electric Car Deals May Threaten Segment’s Future
While price cuts and low lease rates have been moving electric cars like never before, resulting in “sold out” models and tight supplies at some dealerships, there may be a dark side to the deals. When discounts like this happen in the rest of the auto market and residual values drop, the impact on auto companies is clear. Profits on the discounted vehicles drop and the models are often dropped or given a redesign aimed at revitalizing or repositioning them in the eyes of the consumer. For new models, it is often the kiss of death.
