Most Viewed Content:

Kodi 20 Nexus Launched with AV1 Hardware Decoding and PipeWire Multimedia Server

Kodi is a free, open source and cross-platform home...

Samsung gives 980 users affected by the 0E incident a new 980 PRO disk for free

The article attracted a lot of attention and was...

Apple, AMD and Nvidia compete for TSMC’s AI chip orders, related chips will be produced after April

According to Taiwan's Economic Daily News, Apple, AMD and...

Tesla netted 69,000 yuan per car, 8 times that of Toyota

Analysis shows that although Toyota sold more than seven times as much as Tesla in the third quarter, Tesla made eight times more profit per vehicle than Toyota, which helped Tesla. It leads Toyota in quarterly net profit for the first time since going public in 2010.

Tesla focuses on premium models like the Model Y

Tesla reported a third-quarter net profit of $3.29 billion. By comparison, Toyota’s third-quarter net profit was 434.2 billion yen. Calculated at an average exchange rate of 138:1 between the yen and the U.S. dollar in the third quarter, Toyota’s third-quarter net profit was about $3.15 billion.

Tesla has become one of the most profitable automakers in the world, even as Toyota’s profits have slumped due to some idiosyncratic factors, including rising raw material costs. Although its net profit in the third quarter was lower than that of Mercedes-Benz, it surpassed both BMW and Volkswagen. Tesla’s net profit margin for the quarter was 15%.

Tesla’s high profits are largely driven by the profitability of individual vehicles. Toyota sold 2.62 million vehicles in the third quarter, 7.6 times more than Tesla’s 344,000. But Toyota’s net profit per vehicle is about $1,200, one-eighth of Tesla’s $9,570. Tesla’s net profit on individual vehicle sales is considered industry-leading, even ahead of the likes of Mercedes-Benz. Tesla’s profit per vehicle has grown particularly rapidly since the second quarter of 2021. Investors responded positively. As of Monday, Tesla’s market value was about $622.3 billion, about three times that of Toyota.

Toyota bZ4X Electric Vehicle

The gap is the result of fundamentally different strategies pursued by the two automakers. Toyota offers a wide variety of vehicles, from gasoline-powered to hybrid, electric and fuel cell vehicles, in sizes and prices. By contrast, Tesla is solely focused on electric vehicles. Sales of the Model Y and Model 3, which account for more than 90% of its total sales, have nearly doubled in two years despite relatively high prices. Even the cheaper Model 3 starts around $40,000 in the US.

At the same time, Tesla, confident in its strong brand appeal, did not hesitate to raise prices to pass on higher raw material costs to consumers. The company also started offering its lucrative self-driving software to consumers as an add-on option before its rivals. “The biggest factor behind Tesla’s profit growth is sales volume, followed by price hikes and increased sales of self-driving software,” said Koji Endo, an auto industry analyst at SBI Securities in Tokyo.

Latest

Sony will stop PS Plus Collection select game service after May 9

Sony has been offering PlayStation Plus Collection selections to...

Google released version 1.20 of the programming language Go

Google today released a new version 1.20 for the...

Realme GT Neo5 real machine photos announced: transparent RGB design

Realme GT Neo5 will be officially released on February...
spot_img

Newsletter

Don't miss

Sony will stop PS Plus Collection select game service after May 9

Sony has been offering PlayStation Plus Collection selections to...

Google released version 1.20 of the programming language Go

Google today released a new version 1.20 for the...

Realme GT Neo5 real machine photos announced: transparent RGB design

Realme GT Neo5 will be officially released on February...

AMD announces more low-cost B650 motherboards, expected to be available in Q1

AMD today announced that AMD will launch more AM5...
spot_imgspot_img

Microsoft Windows 11 adds Phone Link widget: display phone notifications and battery status, etc.

Microsoft Windows 11 users are finally getting more widgets. the Messenger app recently became the first third-party widget to enter the Microsoft Store, and...

Feifan F7 is scheduled to debut on February 5th: supports battery replacement

Feifan F7 was declared by the Ministry of Industry and Information Technology in September last year, and it is now announced that it will...

Russian MS/MC-21 airliner to be in mass production by the end of 2024

The Russian MS-21 airliner will be certified and enter mass production by the end of 2024, said Sergey Chemezov, president of the Russian State...