At the same time, Tesla is 7.6 times behind the Japanese in terms of sales
Tesla’s profit per car sales exceeded that of Toyota by about eight times in July-September 2022, writes Nikkei Asia, which has read the financial reports of the companies. As a result, the American electric car maker outperformed the Japanese in quarterly earnings. This happened for the first time since 2010, when Tesla started trading on the stock exchange. Not the last role was played by unforeseen circumstances that intervened in the activities of Toyota.
Tesla earns $9,570 per car, while Toyota earns only $1,200. Thus, in terms of car profitability, the American manufacturer has become a market leader, surpassing even Mercedes-Benz. In terms of sales volumes, Toyota sold 2.62 million cars from July to September, which is 7.6 times more than Tesla’s result of 344,000.
At the same time, Toyota’s quarterly net profit amounted to 434.2 billion yen, or $3.15 billion at the current exchange rate. Tesla earned $3.29 billion in the same period, beating a Japanese competitor for the first time in 12 years.
The margin of Tesla vehicles has been actively growing since April-June 2021. Investors are reacting positively, which is why Tesla’s market capitalization today is $655 billion, about three times that of Toyota. In addition, Tesla has become one of the most profitable automakers in the world: in terms of net profit in the third quarter, it lost to Mercedes-Benz, but outperformed such giants as BMW and Volkswagen.
For Toyota, the third quarter of the fiscal year turned out to be unprofitable. This is due to a sharp increase in the cost of materials and electricity, as well as losses due to the cessation of work in Russia. To support falling profits, Toyota intends to raise prices for entry-level models: the US will feel the price increase first, and then it will reach European markets.