Tesla breaks the market thanks to its productivity. How much does the electric car manufacturer earn compared to some other rival?
Tesla is one of those manufacturers that has managed to gain a foothold in one of the most established industries that we can find in the economy. Having a market share in this sector is not an easy task due, above all, to the high entry barriers that exist due to the incredible investments that must be made. After all, the design, development and production of a certain model can amount to several billion dollars. The company, whose owner is Elon Musk, has managed to overcome all obstacles.
Much has been said about the profitability or not of the electric car manufacturer. In 2013, just a few months after the start of production of the Model S, the firm managed to be profitable for a quarter, prevailing in the market by earning a profit of 11 million dollars. Nevertheless, His biggest milestone was the development of the Model 3 saloon., since it has managed to multiply its billing exponentially. Now, we find ourselves before a company very different from what was seen in those first years of mass production.
Let us see, therefore, why we are before one of the most competitive brands in the automotive industry, what are the main keys behind the milestone of sustainable mobility understood by Tesla and, of course, to what extent Tesla’s electric cars are the most interesting on the market. We are, without a doubt, before a manufacturer that has decided to change some rules in the automotive industry.
Tesla and its profitability are a success to be analyzed by productivity experts
Tesla has broken the market with its range of cars. How much do you earn for each unit sold? According to the Notebook Check portal, on average, the electric car company managed to close the year setting a margin close to $10,000 per vehicle. More concretely, about $9,570 per unit. To understand this record, however, a comparison is needed. Toyota, for example, only earned $1,200 per unit produced and sold.
This draws even more attention when checking how the Japanese manufacturer is one of the few that does not have a large electrical catalog in its ranks. Hybridization continues to be its sales pillar, but purely electric models, that is, without its corresponding internal combustion engine, no. It is true that the Toyota bZ4X is available in some markets, but the company does not want to carry out significant marketing campaigns. It would be, without a doubt, to accept that they have followed the wrong strategy for more than 2 decades.
The published data shows that Tesla’s operating margin is much higher than that offered by the competition in the market. In fact, there are certain manufacturers that lose money due to the production and maintenance of battery-powered cars in their catalogue. According to the Asia Nikkei portal, the previous record also has the following reading: Tesla earns 8 times more than Toyota with its cars. It is not surprising that we are facing one of the most valuable brands in the industry.
These data allow the company conduct studies for the future launch of a Model 2In other words, a compact model that would further democratize access to sustainable mobility. To do this, part of the margin would have to be given up, but the popularity of the brand would not stop increasing even more. After all, we would be facing a car that could start at $25,000.