Tesla’s earnings per vehicle beat the world’s most valuable auto brand eight times

While Toyota is still the most valuable car brand and has been for quite a while, the intrinsic value of its name has risen roughly in sync with the global inflation rate in 2022, while the Tesla’s brand value rose three times faster to sit at US$48. billion. Not only is Tesla is now the third most valuable automotive namebut his badge merit has increased 32% year-over-year, supported by both increased brand recognition and an increase in market capitalization on the wings of his record profit margins which beat Toyota’s eightfold.

A Tesla exec confirmed not too long ago that his cars cost US$36,000 to make on average in parts and assembly, while selling about US$10,000 more, making it the most successful automaker in the world in this regard. Needless to say, a Plaid Model S or Model X will cost more to build than the lowly Model 3 which starts from an MSRP of US$46,990, but gross margin across all vehicles in Tesla’s portfolio sits at almost 30%, with only a few companies like Apple making better products in this regard.

In fact, Elon Musk recently mentioned that at the rate things are going Tesla would be able to produce its highly anticipated Model 2 for the mass market at half the cost of the current Model 3 platform and may one day achieve a market capitalization greater than “Apple and Saudi Aramco combined.”

Granted, Toyota is the world’s largest automaker with a huge portfolio and unit production surpassing that of VW, not to mention Tesla’s lackluster production, but its market capitalization takes second place behind Tesla. Last quarter, Tesla managed to make slightly more money than Toyota for the first time, at $3.29 billion from $3.15 billion, although the Japanese company shipped seven vehicles to market for a Tesla.

It is because of the “frankly embarrassing” in the language of Elon Musk Tesla car prices against the cost of goods sold on its balance sheet. Toyota’s profit per vehicle was around US$1,200 last quarter, while Tesla’s was eight times higher at around US$9,570. This could be higher than the net profit margin per vehicle of the “the world’s most valuable luxury car brand“, as Mercedes-Benz describes itself.

Toyota has bigger profit potential than that, of course, and in fact its operating profit was higher than Tesla’s, but it had to scale back its operations in Russia and help its suppliers pay their electricity costs. . However, it was kicked and screamed into the new era with a relatively slow adoption of an electric-only strategy that only recently released the first vehicle on the Toyota bZ4X Platform.

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