Automotive: Mercedes taking bloodbath on EV sales

Mercedes-Benz shares fell 6% Thursday as it reported lower profit and revenue and highlighted a financial bloodbath in the electric vehicle space.

The company said it had faced a “subdued market environment marked by intense price competition,” particularly in EVs.

On an analyst call regarding the results, Chief Financial Officer Harald Wilhelm described the EV market as a “pretty brutal space,” Reuters reported. It comes as some traditional automakers sell EVs for less than regular combustion-engine cars — despite higher production costs.

“I can hardly imagine the current status quo is fully sustainable for everybody,” Wilhelm said, according to the news agency.

We call that ‘voodoo’ economics used extensively by the Indy Racing League to kill CART and by Formula E which races before minuscule crowds (real paid attendance not free tickets to fill otherwise empty seats) at most events.