At a time when Tesla’s share continues to rise, with its market capitalization approaching $ 400 billion, Akio Toyoda, president of Japan’s Toyota Corporation, is overvalued, surpassing the valuations of all seven Japanese automakers combined.
“Toyota” can learn from Tesla’s success with investors, and its business model, which includes revenue from electric cars, credit, software, and renewable energy products, he said during a conference call with reporters.
Toyoda acknowledged Tesla’s success, but said, “Its valuation and market price do not reflect the scale of its business in the” real world “, or compare Toyota’s large-scale manufacturing and sales.
The CEO of “Toyota” likened “Tesla” to a restaurant still searching for its recipes, at a time when Toyota is already serving a large number of customers.
He pointed to about 100 million cars already on the road by Toyota customers, and on the way to produce 7.5 million cars during the fiscal year ending in March 2021.
The Japanese company “Toyota” expects to sell about 7.5 million cars, with an operating profit of 1.3 trillion yen (equivalent to 12.6 billion dollars), during the fiscal year ending in March 2021, while Tesla expects to sell 500 thousand electric cars in 2020.
Toyoda described Toyota’s products on the full menu, referring to his company’s mix of cars with internal combustion engines, hybrids, full-electric cars, and petrol-powered electric cars.
But Toyota did not seek to manufacture pure electric cars in large size until late last year, when it announced a joint venture with Chinese BYD (the biggest competitor to “Tesla” in the world).
Although Toyota’s profits declined in the last quarter of this year, the company witnessed a sales rebound by 3% higher than the global average for auto makers, after the Corona epidemic reduced sales in China during the first half of 2020.
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