Toyota Beats Tesla In Earnings But Still Doesn’t Come Near To The EV Crown

On Wednesday, Toyota Motor Corporation (NYSE: TM) managed to beat Tesla Inc (NASDAQ: TSLA) in earnings, but not thanks to EVs. Toyota improved its results by increasing production, with its fourth quarter profit jumping 35% and beating forecasts, on the back of record revenue for the fiscal year.

Fourth Quarter Highlights

In comparison, Tesla’s first quarter operating profit amounted to $2.7 billion, collapsing from last year’s comparable quarter when it amounted to $3.6 billion, greatly owed to Tesla’s discounting strategy aimed at boosting demand.

During the quarter that ended in March, net profit rose 3.4% from last year’s comparable quarter to $4.08 billion on a revenue increase of 19% as sales amounted to 9.7 trillion yen.

Fiscal 2023 Highlights

Total production amounted to 9.1 million units. As the weak yen boosted the value of overseas sales and increased output outweighed the impact of surging costs of materials, revenue for the fiscal year ended in March grew to a record 37.15 trillion yen.

Fiscal 2024 Outlook

Unlike Tesla who does not provide full year guidance, Toyota expects fiscal 2024 profit to rise from $20 billion it generated in fiscal 2023 that ended in March to reach $22 billion. Total vehicle production is targeted at 10.1 million units, presenting a rise of 11% YoY. But there will be a five-fold jump in EV sales as global supply chain disruptions and shortage of ships is expected to ease. With the new CEO at helm, CEO Koji Sato, Japanese automotive giant committed to finally board the all-EV train and uplevel its game by launching 10 new EV models by 2026, targeting an annual production rate of 1.5 million EVs in three years. But even Toyota has a long way to go to catch up to Tesla in terms of production.

Two Revealed EVs For China

On April 18th, Toyota unveiled two battery electric vehicle concept models at the Auto Shanghai to compete with Tesla’s Model X SUV. The concept models to be released in 2024 are part of Toyota’s bZ series dedicated to BEVs. During its annual report presentation, Toyota also revealed it will release two luxury sedans, two three-row SUVs, a multi-purpose pickup truck IMV BEV and a sportscar that would compete with Tesla.

Story continues

Competition Is Intensifying

Even Tesla is in for a headache as BYD Company Limited (OTC: BYDDY) continues to challenge its dominance in China. On May 10th, it followed Tesla’s price cuts by significantly discounting its Seal sedan that competes with Model 3. For now, Tesla has managed to protect its throne from BYD with price cuts, but this may no longer be the case. BYD already managed to lure away Volkswagen’s customers and leave other global brands behind on the Chinese market. Fortunately for its competitors, BYD is solely focused on China but then again, this is the world’s largest EV market.

This time, Toyota retained its crown as the world’s top-selling automaker, but many challenges are ahead as it continues to step up its EV game.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

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This article Toyota Beats Tesla In Earnings But Still Doesn’t Come Near To The EV Crown originally appeared on Benzinga.com

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