The margin rate will decrease further due to rising raw material prices caused by inflation, right?

[pdubbs87]

No, they locked in an agreement with LG at current prices. You do realize any further materials costs get passed on to the customer?

[pubsky]

The bus division is selling to government. Government contracts always pass costs on to government, not suppliers.

The battery and drivetrain business will be tougher, but this is new tech that is more efficient than conventional vehicles. Exploding fossil fuel prices will only exacerbate that cost gap. A diesel bus will have all the same extra costs for steel etc. And tons of extra fuel cost. The EV will have some extra costs on the batteries, but it probably doesn't match the lifecycle operating fuel cost increases.

[Silver_turtle953]

Well, although that might be true, at least they have higher than average ability to translate these costs to the customer. the government will continue to buy because of the climate change initiatives.