

You write off stuff over a certain time. Development cost, that factory you built, the software you implemented. Depending on how you do your books maybe not the last one. Anything you write off gets spread over the things you make your money with. You develop your car once, but if you sell it a hundred times, the cost of each one goes up by one hundredth of your development cost, whereas if you sell it a million times, the cost of your car only goes up by one millionth of your dev expenses. So your cost per car goes down as your volume goes up.
Are we?