A recent report from Electrek claims that Tesla earns eight time more profit than Toyota and the Japanese headquarters are starting to notice.
In the past couple of years, Tesla has reported consistent profits, despite its shortcomings that see thousands of models recalled. Q3 of this year saw over 356,000 cars delivered, a record number for the electric vehicles company. Last quarter also saw the company reach a record of $3 billion USD in profits, showing no signs of a slow down.
Legacy automakers like Toyota deliver millions more vehicles than Tesla, yet it appears that it does not mean they make more money doing so. For instance, last quarter, Tesla reported $3.29 billion USD while Toyota reported $3.15 billion USD, despite the Japanese brand delivering eight times more vehicles that Tesla in the same period. The number is more astounding after considering that just a decade ago, Toyota owned 3% of Tesla with just a $50 million USD investment. Now, Tesla generates $50 million USD in free cash flow almost on daily. Toyota divested in Tesla in 2017.
The success of Tesla is, however, not reflected in the stock price, which was reported to drop 5% in Q3. Despite the lowered stock price, Tesla’s profit is still at an all-time high proving that it is important to look at the greater picture.
In other automotive news, Google and Renault are collaborating to build a “software-defined vehicle.”
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