Toyota is LOSING to Tesla in Profitibility... Here's Why

#Tesla just beat #Toyota in profit despite selling 7x less vehicles. How can this happen? Let's break down how Tesla is out-smarting the greatest automaker the world has ever seen.

Sources:

00:00 - Tesla showing Toyota how to make $$$
01:19 - Toyota Profit Slides
03:02 - Toyota still lucrative
03:32 - Why Tesla is extremely profitable
06:03 - My Concerns...

[Tigerex]

I will be worried when Toyota is losing to Tesla on quality, reliability, and customer service.

I am glad they are losing in profitability, this simply means Toyotas are actually worth their price, while Tesla owners are getting screwed by the company just thinking about profit owe car over value to the customer over car.

If Tesla had the same profit margin and was fair to it's customer, their prices would go down about $9000.

[zarbon]

Low build quality, anti right-to-repair, and overpriced vehicles is why Tesla is more profitable.

[seikocitizenwatches]

Toyota replaced my undercarriage spare tire assembly at 190K miles, dashboard at 220k miles. Toyota Toyota stand behind their products long after sales is where their profit goes.

[shivamarya]

In terms of actual gross profits Tesla is way behind, and the only reason profit projections are low this year for traditional auto is supply chain issues, they're gonna climb back up

Tesla only enjoys high profit per car now because there is no real competition in selling cars or fuel(charging stations) and expensive options (12k for Full self driving per car), allowing them to jack prices up but the fact that is current battery tech is gonna hit its limit and unless they somehow develop solid-state or some other revolutionary tech, other companies will catch them and competition just causes profits downfall

[boost]

Ooor is it because Toyota actual has a quality inspection process where an actual human looks at the car and makes sure it it put together properly .? Tesla sends vehicles out with panel gaps that can be measured in inches, missing components, parts replaced with random home depot parts when proper parts run out, bolts fro.n the hardware store that do not meet proper strength ratings. Sorry, but I dont care how much profit they make. The vehicles are trash.

[imnotusingmyrealname]

Tesla sells their BS "self driving" packaged for like 10k and then an additional package on top of that for nothing. Any Toyota can "drive itself" with adaptive cruise control and lane keep assist.

[iljapetroff]

I wonder how Lexus profitability compares to Tesla; I mean it should be logical that luxury market has higher profit margin per car.

[zhila]

selling cars with those garbage build quality for those prices? it’s easy to be profitable that way

[InternetDude]

As someone who’s owned two Teslas and 5 Toyotas/Lexus there is no comparison in quality. Tesla is shit box quality with bad support. Toyota #1

[MetoFulcurm]

How is the situation with subsidies lately? There was a 7500$ for subsidy to consumers for buying an EV.

[RagShop]

No such thing as a $40K. base model 3; it STARTS at over $48K, thousands more than a Toyota BZ4X base model.

[artblackwood]

Ev's are great but there is a huge problem looming. just consider driving on an interstate highway, and needing to fuel up. Typical gas cars get 300 miles per fillup and it takes about 5 minutes at the pump. EV's will get ~200 miles per charge using the fast charge stations and that takes 15 minutes. We've all been in line for gas on the interstate. There will be 33% more EV's and they will take 300% longer to charge. the average gas station on the interstate has around 24 pumps. In order to make things about the same the fuel stations would need around 95 charging kiosks.

[trevorweinstock]

ICE vehicle sales peaked in 2019 and will not recover to those levels. “Supply chain shortage” didn’t seem to affect Tesla… ever wonder why?

[luckydubefan]

Scott Kilmer said that every Tesla has a problem. Junk car!

[bigcrowfly]

Is really an accounting issue. Toyota uses accounting treatment of an industrial company and Tesla uses the accounting treatment of a high-tech company.
Different accounting treatment of revenues, expenses, investments, labor costs, will result in different reported profits for the same company.

[tobylee]

Tesla also do the worst thing call subscription for a software upgrade and can turn it off if they wanted to, or when you try to sell it.

[InvestBetter.]

This video sounds like Toyota-bashing, but they are clearly the best run OEM automaker
They are dominating the rest of the OEMs
If Toyota is struggling to keep up, what does that say about the rest of them?

[ryan_bitt]

As a consumer I don't even consider a tesla model as an option because of the high price and terrible reputation for quality. I need whatever I get to last at least 10 years plus with minimal maintenance and I've had 2 toyotas that have done just that and they were both under $20k used.

[ChrisRobato]

Corolla at over $20k isn't close to being the cheapest Toyota you can buy worldwide. The Hilux can come at $16k base and the Liteace can come at $11k.

[telepathyah]

Thanks for the great financial analysis!