Toyota earns next to nothing if you compare its profits to Tesla

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This is news that has something to challenge: the historic manufacturer is much less efficient than the young firm of Elon Musk…

Toyota makes almost-nothing if 'we compare its profits to Tesla

Specialist on the Asian question, Nikkei has just published a detailed paper comparing the latest quarterly results of Tesla and Toyota. It’s not new, but we discover a tremendous turnover for both of them, with however key differences on the profit side. As a reminder, the profit is theremainder of subtracting the company's expenses from all of its revenues. This figure takes into account not only production costs, but also labor, marketing costs, rental of the head office etc.

In terms of pure numbers, the company created by Jack Dorsey reported having generated no less than $21.45 billion in the last quarter, for 3.29 billionprofit. For comparison, over the same period from the beginning of July to the end of September 2022, Toyota claims to have made $3.15 billion in profits. Except that the Japanese group has sold nearly eight times more cars than its American competitor

Whose fault?

This can be explained in several ways. First of all, you should know that Tesla vehicles are much less affordablethan their eastern counterparts. To understand how stark the difference is, let's take the example of two base models with electric propulsion offered by the manufacturers. The Toyota Camry, hybrid and with five doors, starts at 39,100 euros in metropolitan France. But the Model 3, which needs no introduction, is not accessible for less than 53,000 euros (excluding ecological bonus) new…

What's more, 8217;let's not forget that these are indeed the basic prices, but that to these are added a plethora of options. Choices that further convince the younger generation of Tesla buyers, accustomed to paying for additional services or even on subscription. At the Japanese, it is also possible to climb to more than 50,000 euros, but to do so you have to go through a much less intuitive online configurator.

A cutting-edge strategy to the rescue

The good news for Toyota is that the manufacturer seems to have already learned from its mistakes. According to other data, this time from the Reuters press agency, its leaders have recently decided to draw direct inspiration from Tesla's efforts. to better develop their growth.

To date, according to official stock exchange rankings, Tesla is worth more than 600 billion dollars on Wall Street compared to about 188 billion dollars (equivalent in yen) for Toyota. Both are at the top of the world's largest valuations, ahead of BYD (third) and Porsche (fourth).