How do companies like Bugatti, Rimac and other supercars make money?

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Given that they only produce a handful of cars a year, and sell them for $2-3mil, how do they still make enough profit to cover all expenses?

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Anonymous 0 Comments

In the words of Prop Joe, “buy for a dollar, sell for two”. All businesses make money by making something with inputs that cost less than they sell the output. It doesn’t matter it’s selling 20 units for $60 million that cost $50 million to make or 2,000,000 for $30,000 each when they cost you $29,500 to make.

That said, many of these brands are owned by very large auto manufacturers, VW (owner of Bugatti) doesn’t disclose that brand’s financials separately from the others. It’s possible they tolerate operating that brand at a loss as long as it’s running within some tolerated amount, as the brand provides some marketing for the bigger company.

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