led by Elon Musk Teslacontinues to take its place among the world’s largest automakers. The company, which sells hundreds of thousands of electric vehicles annually, continued its success with its Model Y car becoming the best-selling vehicle in Europe in recent months.

Now information has emerged about how the US company outperformed other giant companies. Accordingly, the car giant earns eight times more than Toyota, which tops the list of the world’s largest car companies.

Tesla makes much more profit than Toyota despite selling fewer vehicles

Tesla has managed to achieve stable profit rates over the past two years. The company, which has been described as the most valuable car manufacturer for two years, more than 3 billion dollars stated that it turned a profit and that its profitability doubled in the same period of the previous year. This success allowed the company to exit one of its biggest rivals, Toyota.

Tesla reported a net profit of $3.29 billion in the third quarter of this year, while Toyota reported a profit of $3.15 billion. While these numbers seem close, those are Toyota’s millions more vehicles sold we have to add. Selling more vehicles therefore does not mean more profit. According to the analysis, Toyota Group last quarter 2.62 millionlike Tesla 344,000 sold vehicles. Japan-based auto giant Tesla made a profit of $9,570 while making a profit of $1,200 per vehicle.

Why is there such a difference?

Let’s talk about the reasons for the difference. As is known, Toyota produces vehicles in different classes and at different prices, from petrol vehicles to electric vehicles. Tesla, which currently comes out with 4 models, only produces electric cars. The Model Y and Model 3 account for 90% of the US company’s sales. The proliferation of electric vehicles much faster than expected, Tesla’s innovative technologies, sales volume and not afraid to raise prices because of its customer profile. Factors such as these enable the company to absorb this difference.

For Toyota, the situation is different. Majority of customers lower price and lower profit on the way to vehicles. Problems such as material shortages also affect the company. Toyota’s high sales volume, which must be sustained in order not to lose its market share, and its support to suppliers to cope with ever-increasing material and energy costs, also means that it is settling for lower profits.

Like most auto companies, Toyota has major electrification goals. The company plans to sell 3.5 million electric vehicles by 2030. However, the Japanese company is currently series-produced single electric vehicle bZ4x mentioned model. In other words, it is not yet a leading company in the field of electric vehicles. At the November 1 meeting, a Toyota executive stressed the urgency of the situation and said they should not be left on electric vehicles. In other words, it can be said that the company needs to increase its efforts in this area.

As electric vehicles become more common, we will see how competition between these companies will take shape in the coming years.