One of the biggest manufacturers in the world, Toyota undoubtedly possesses a solid understanding of how to create goods that are both markets- and profit-driven after all these years. Toyota sells a wide range of vehicles, the majority of which are available with fuel-efficient hybrid powertrains, and some of which come with a plug, despite the fact that it hasn’t advanced quickly with fully electric cars. Despite being the Largest and most successful Automaker in the World Tesla allegedly makes eight times more profit than Toyota, and the Japanese headquarters are starting to take note, according to a new Electrek story.
Tesla with all its flaws, which have resulted in the recall of thousands of cars over the last couple of years, Tesla has consistently posted profits. More than 356,000 automobiles were shipped in Q3 of this year, a record high for the manufacturer of electric vehicles. The business continued to grow, setting a record last quarter with $3 billion USD in profits.
Despite producing millions more automobiles than Tesla, established manufacturers like Toyota don’t seem to be making more money from their operations. For instance, Toyota reported $3.15 billion USD in the same quarter whereas Tesla claimed $3.29 billion USD, despite Toyota delivering eight times as many automobiles as Tesla. The figure is even more impressive when you remember that Toyota only owned 3% of Tesla a decade ago with an investment of just $50 million USD. Tesla now produces a free cash flow of $50 million USD daily. In 2017, Toyota sold its Tesla stock.