You are talking about IPOs and other secondary stock offers.
During secondary stock offers, Investors will care about how much value the addition funds will create relative to cash put in.
Still, this is different than a percent profit margin on sales. Investors care about the total profit, not the percent margin.
going back to the actual situation, EV's lowering the percent profit margin doesnt matter as long as they are increating the total profit.
If you sell 1 million gas cars at 20% profit, and can sell 1 million EVs at 10% margin, you are still better off selling the EVs and taking the 15% margin on 2 million cars.
The idea that ford is dialing back production because it lowers their percent margin isnt a realistic justification. especially after the funds have been sunk in manufacturing.
During secondary stock offers, Investors will care about how much value the addition funds will create relative to cash put in.
Still, this is different than a percent profit margin on sales. Investors care about the total profit, not the percent margin.
going back to the actual situation, EV's lowering the percent profit margin doesnt matter as long as they are increating the total profit.
If you sell 1 million gas cars at 20% profit, and can sell 1 million EVs at 10% margin, you are still better off selling the EVs and taking the 15% margin on 2 million cars.
The idea that ford is dialing back production because it lowers their percent margin isnt a realistic justification. especially after the funds have been sunk in manufacturing.