Shulou(Shulou.com)11/24 Report--

Beijing, November 8 (Xinhua) although Toyota's sales in the third quarter were more than seven times that of Tesla, Tesla's profit per car was eight times that of Toyota, which helped Tesla lead Toyota in quarterly net profit for the first time since it went public in 2010, according to an analysis.

Tesla, a high-end model such as Tesla's focus on Model Y, reported a third-quarter net profit of $3.29 billion. By contrast, Toyota's third-quarter net profit was 434.2 billion yen. Toyota's third-quarter net profit was about $3.15 billion, based on the yen's average exchange rate of 138 per dollar in the third quarter.

Although Toyota's profit decline has been affected by some special factors, such as rising raw material costs, Tesla has become one of the most profitable carmakers in the world. Although it lagged behind Mercedes-Benz in net profit in the third quarter, it also surpassed BMW and Volkswagen. Tesla's net profit margin for the quarter was 15 per cent.

Tesla's high profits are largely due to the profitability of a single car. Toyota sold 2.62 million cars in the third quarter, 7.6 times that of Tesla's 344000. However, Toyota's net profit per car is about $1200, which is only 1/8 of Tesla's $9570 (69000 yuan). Tesla's net profit on individual car sales is considered to be ahead of the industry, even ahead of companies such as Mercedes-Benz. Tesla's bicycle profits have grown particularly rapidly since the second quarter of 2021. Investors reacted positively to this. As of Monday, Tesla's market capitalization was about $622.3 billion, about three times that of Toyota.

The gap between Toyota's bZ4X electric vehicles is caused by the fundamentally different strategies adopted by the two automakers. Toyota offers a wide range of cars, ranging from gasoline-powered vehicles to hybrids, electric vehicles and fuel cell vehicles of different sizes and prices. Tesla, by contrast, focuses only on electric cars. Sales of the Model Y and Model 3, which account for more than 90 per cent of their total sales, have nearly doubled in two years despite their relatively high prices. Even the cheaper Model 3 starts at around $40, 000 in the United States.

At the same time, Tesla is full of confidence in his strong brand attractiveness and does not hesitate to raise prices, passing on higher raw material costs to consumers. The company also began to offer lucrative autopilot software to consumers as an additional option before its competitors. "the biggest factor behind Tesla's profit growth is sales, followed by price increases and growth in autopilot software sales." Said Koji Endo, an automotive industry analyst at SBI Securities in Tokyo.

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