How Do You Make a Profitable Electric Car?
By: Itay Michaeli
Aug. 14, 2025From our tour of Caresoft's vehicle tear-down facility with Terry Woychowski, Caresoft President, Automotive, we found that Chinese automakers continue to lead the global EV race through impressive technological advancement and rapid product development, without the burdens of typical inertia that can face traditional automakers.
Outside of China, pure EV automakers are also taking advantage of their strong tech positions and faster product development, though these players still appear to trail Chinese manufacturers. Traditional automakers are playing catch-up, but leaning into core strengths in strategic segments, key brands and popular nameplates—efforts that are showing early signs of success.
Making profitable EVs may require an all-of-the-above approach leveraging best-in-class tech (including new software and services), a relentless pursuit of vehicle efficiencies and costs, rapid product development and robust go-to-market strategies.
