Toyota It certainly sold more units than Tesla during the third quarter of 2022, but the electric car manufacturer obtained higher net profit in the period.
Taking it to the numbers, Tesla reported net profit of $3.29 billion in the July-September quarter, while its Japanese counterpart achieved $3.15 billion, which translates to eight times more earnings per car.
Toyota’s profit fell in the third quarter due to several factors, including higher material and electricity costs for its suppliers.
Therefore, the additional costs reduced earnings by about $3.07 billion. In addition, he recorded one-time expense of $663 million after shutting down production in Russia.
Not everything is negative for Toyotam as it came out ahead of Tesla in operating profit, generating $4.08 billion compared to $3.69 billion for Elon Musk’s maker.
Tesla took many years to become profitablebut now it is one of the companies with best development as far as cars are concerned. This is due to their profit on each car, which is higher than most at $9,570 profit on each vehicle produced. Toyota makes a profit of $1,200, just for comparison.
Nikkei Asia, reports that Tesla is estimated to lead the market in terms of net profit per vehicle. That explains why earnings remained strong, while Toyota faced ups and downs in the mentioned period.
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“The biggest factor behind Tesla’s earnings growth is sales volume, then price hikes and an increase in self-driving software sales”, comments Koji Endo of SBI Securities.
tesla is found reducing production costs with its foundry machines Giga-Press which, in turn, speed up production. Also, selling cars directly to consumers helps.
Editorial New Electric Autos Source: Carscoops
