General Motors (NYSE:GM) stands to lose $8K-$9K on every Chevrolet Bolt it sells when the all-electric subcompact starts rolling out, Bloomberg reports, shedding light on the lack of profitability of electric cars in the U.S.
California and nine other states that make up a combined 30% of the U.S. market mandate that automakers sell some non-polluting vehicles if they want to do business there, which goes a long way to explaining why money-losing zero-emissions models from more than 10 brands are on the roads, with more on the way.
The industry is willing to take the hit on a small scale now but things could get dicey over the next decade or so, as the states’ rules are set to tighten so that zero-emission vehicles will have to rise to an estimated 15.4% of sales by 2025, ~5x the current level.
A California law ordering greenhouse-gas emissions to be 40% below 1990 levels by 2030 would require ZEVs, plug-in hybrids or fuel-cell cars to comprise 40% of sales, up from ~3% now.
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