• Tesla is blossoming into a vehicle giant
• Tesla makes more earnings per car than Toyota in the third quarter
• The two car manufacturers have different strategies
Tesla has now clearly arrived in the league of the largest car manufacturers in the world. It’s not that long ago that Tesla boss Elon Musk was dismissed by many as a dreamer for his e-car visions. But the latest quarterly figures have also proven that the US group is no longer a flash in the pan. Because despite high inflation and global concerns about an economic downturn, Tesla was able to increase sales and profits significantly in the three months from July to September. Revenue rose to a new record of $21.45 billion, while profits rose to $3.29 billion.
The Tesla boss himself was also very optimistic about the year 2022 in view of this result during the conference call with analysts: “It looks like we’re going to experience an epic end of the year”. In his opinion, the final quarter could be “record-breaking”.
Tesla beats Toyota in earnings per vehicle
An analysis by the Asian financial portal Nikkei Asia recently showed how profitable the electric car manufacturer really is. In the third quarter of 2022, Tesla made eight times more profit per vehicle than the Japanese car giant Toyota. And that although Toyota would have sold seven times as many vehicles. In terms of quarterly net profitability, Tesla overtook its Japanese rival for the first time since its IPO in 2010.
Toyota sold 2.62 million vehicles in the past quarter. Tesla had only delivered 344,000 vehicles in the same period. A clear difference. Nevertheless, according to the portal’s calculations, the Japanese company only made around 1,200 US dollars in profit per vehicle. Tesla, on the other hand, would have recorded a whopping plus of 9,570 US dollars for the sale of each Stromer.
Toyota has to cope with a drop in sales
The profit of 3.29 billion US dollars at Tesla is also offset by an operating plus of 434.2 billion yen (equivalent to around 3.15 billion US dollars) at Toyota. In contrast, the Japanese company’s sales fell to 461.3 billion yen from July to September. As Nikkei Asia reports, the decline in sales is partly due to extraordinary factors. The higher material and energy costs had a negative impact, as did the write-downs relating to the discontinued business in Russia.
Different strategies
The fact that the two car manufacturers are so different is also due to the different strategies of the two groups. Where Tesla focuses exclusively on electric vehicles, Toyota offers a wide range of different vehicles, including petrol, diesel or hybrid cars. In addition, the Musk Group does not shy away from passing on higher material costs to customers. Tesla’s focus on the “Autopilot” driver assistance system would also offer another advantage. SBI Securities expert Koji Endo told Nikkei Asia, “The biggest driver of Tesla’s earnings growth is sales volume, followed by price increases and an increase in autonomous driving software sales.”
Which of the two car manufacturers will have the edge in the long term will also depend to a large extent on how the field of electric mobility develops. As Nikkei Asia writes, Toyoate plans to sell 3.5 million EVs in 2030. However, there is currently only one electric vehicle model in series production. So it remains exciting.
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