Tesla's Profitability Shocks Toyota as the Global Auto Industry's Center Shifts
Tesla's Profitability Shocks Toyota as the Global Auto Industry's Center Shifts
Last night’s Tesla’s profitability shocked Toyota and is pushing a global auto industry center shift. As the electric vehicle revolution continues to disrupt the traditional automotive industry, the once untouchable giants of the industry, Toyota and Renault-Nissan, are struggling to adapt and find their footing, while Tesla’s aggressive expansion plans threaten to leave them in the dust.
On Thursday, Toyota Motor announced a surprise leadership shuffle, with President Akio Toyoda stepping down and being replaced by a chief branding officer at Lexus Koji Sato. This shakeup, along with renewed urgency at Renault and Nissan Motor to restructure their alliance, highlights the rapidly changing landscape of the global auto industry.
In addition to these developments, Tesla CEO Elon Musk recently declared that his electric vehicle manufacturing company will be the world’s number one automaker by a wide margin. These events, along with other shifts in the industry, indicate that what once defined the center of the global auto industry is no longer holding.
For decades, the “big three” of the auto industry were Toyota, General Motors, and Ford. Note that I don’t mean Detroit’s big three. These companies dominated the market and set the standard for the industry as a whole. However, in recent years, the rise of electric vehicles and new players like Tesla have shaken up the traditional power dynamics.
Toyota, once a leader in the industry, has struggled to keep up with the rapid pace of change. In the past, the company has focused on developing hybrid and fuel cell vehicles, but with the growing popularity of electric vehicles, they are now playing catch up. The leadership shuffle at Toyota is seen as an attempt to address this issue and position the company for success in the EV market.
Thus, the way I see it, the global auto industry is in a state of flux because the traditional center that was defined by Toyota, General Motors, and Ford is no longer holding. The rise of electric vehicles and new players like Tesla have shaken up the traditional power dynamics and companies are struggling to adapt. The next few years will be crucial for these companies as they attempt to stay competitive in the face of this rapidly evolving industry
#tesla #toyota
This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.
Reference
Armen Hareyan Torque News Tesla: Toyota Shakeup and Tesla’s Ascent: The Auto Industry’s Center is Shifting https://www.torquenews.com/1/oyota-shakeup-and-teslas-ascent-auto-industrys-center-shifting
Joseph White Reuters https://www.reuters.com/business/autos-transportation/automakers-ev-surge-is-everything-everywhere-all-once-2023-01-26/
Thanks for this I hasnt seen that news about Toyoda. I forecast he’d be kicked out in a years time about a week ago LOL. That guy may have singlehandedly destroyed Toyota. I can see a massive attempt to pivot to full EV urgently from Toyota but its not something that can be easily done (as VW shows) even though Toyota basically had the lead years back with the Prius and could have leveraged that into a full EV brand very easily.
Very clear presentation!
A key piece that’s overlooked is the **vertical market** Tesla aims for.
This something pretty much all the former top dogs have wandered away from.
Too late for Toyota, that boat has already sailed.
Cutting out the middle-man.
Another great video.
Last night Elon Musk made a shocking claim about Tesla’s competition, saying they are invisible, and distant, but Chinese EV makers are scary. Watch more at https://youtu.be/d6t2KaRSn6w
The mistake of Toyota is to sell their Tesla shares instead of increasing it.
Tesla 📈
Toyota gonna become another Nokia to Tesla’s ‘Apple’.
The conservative structure of the Japanese auto industry with its network of small suppliers is one of the major hurdles to the survival of Toyota, Honda, Nissan, etc. Unfortunately, there is too much political pressure to not rock the traditional boat and close down these hundreds of small domestic manufacturing partners. The move to more vertical integration is a necessity in reducing costs to compete with Tesla, BYD, and other Chinese manufacturers. I also sense other Japanese government interference in a shift to electrification. The country already suffers an electric power supply problem. Japan’s dominance in the automotive industry is reducing fast, and the dominance of China is already becoming evident. Even the US, with Biden’s inflation reduction act, will help retain a buoyant auto industry, and the efforts at Ford and GM are already evident. Toyoda’s departure is a panic measure – sorry too late.
tesla is miles ahead, that the big auto owe billions after years of dominance speaks of inefficiency
Shocks? Their delusion is what should shock them.
It’s in front of all the world to see that TESLA remains the most innovative auto manufacturer we’ve seen till date.
It’s a race who goes bankrupt first?? GM? Ford? Toyota? Or Honda?
Toyota has the most debt. GM is most incompetent. Hondas sales are dropping fastest. Ford is already making a loss.
GM made only 39k EV’s in 2022. The dealer lots in the US are now full.
Don’t forget Torque! China is still a competitor to Tesla and especially if they are pushed and Tesla getting too many delays. 😉👍
Hydrogen car makers need to make a "hydrogenwall" like device that can be used @ home to make hydrogen from the grid or from a home’s solar and wind, etc. If homeowners could make their own hydrogen with such an appliance, this would be some competition for EVs and home battery systems. Further, it would use fewer metals and less mining.
You got this EXACTLY RIGHT!!!!!!
If I have it right, a momentous event just took place. EVs reached price parity with ICE cars. That was what the legacy makers assumed would take much longer. The only thing I wish was that Tesla had more real competition. We all know the perils of hubris.
*Don’t sleep on it…this is a time to invest I recently just bought another property valued at over $15m. I wish knew the right investment firm to invest with earlier, better late than never thought*
Musk was talking about FSD when he made the comment about a telescope. Please do not start exaggerating banners and comments as you did at first.
Shakeup, consolidation, partnership, downsizing, buyouts, BANKRUPTCY. Get Ready Armond Sir, You will see frequent use of these terms in your future reporting.
Just a thought, in my mind ,the valley of death for ice cars will accelerate drastically in the very near future. That will be enabled by the announcement and production of Tesla‘s third generation platform,
Teslas technology could be a lifeline for Legacy auto if they choose to take it.🤔IMO
Electric cars are already ridiculously expensive, yet there are even more mugs out there to pay even more. They get what they deserve.
Excellent!! Just found your channel (following several others) and you nail it! thx
Tesla’s profits shock Toyota shift industry