News JVTech Tesla: we know why the world leader in electric cars makes much more money than the competition on every car sold!
Tesla dominates the electric car market, that’s a fact! And if you probably know that their models sell like hot cakes, you may not know that it is at the production level that Elon Musk’s company makes the difference.
Tesla’s net profit exceeds that of other brands
Between July and September 2022, Tesla sold 344,000 cars. During the same period, Toyota put 2.62 million cars on the market. Although it may be surprising, Tesla wins hands down. And the secret lies in the performance of Elon Musk’s branded cars. This data is reported by the newspaper Nikkei and serve to contextualize a powerful title: “Tesla earns 8 times more than Toyota per car sold”.
If we follow the information from our colleagues, Tesla therefore overtook Toyota in terms of net profit last quarter: $3.29 billion for Tesla against 3.15 billion dollars for Toyota. The secret is this: for every car sold, Tesla earns $9,570, while Toyota only has $1,200 for each unit brought to market.
The numbers of You are here are so high that the Japanese newspaper points out that the company earns more profit than Mercedes or BMW, companies that have risen to the top of the earnings rankings by focusing on selling more expensive vehicles. A strategy also followed by the electric car company, which has made its models more expensive in recent months.
Tesla’s secret lies in its factories
There are several reasons why Tesla is being watched closely by other automakers trying to emulate its production model. To achieve these results, Elon Musk’s company has been trying to reduce the number of components in its cars for some time. First there were radars, then they decided to eliminate ultrasonic sensors. The company has promised to leave everything to software, ensuring its self-driving systems rely on cameras and eliminate components that make cars more expensive on the road.
However, this is not what interests the competitors, although this method benefits Tesla. Nix, what the auto industry really wants to copy is Tesla’s manufacturing process. According to Reuterseach Volkswagen ID.3 costs the German company 30 hours, whilea Tesla Model Y costs only 10 hours. “Our goal is clear: We want to set the standard with our production. If we manage to reach 10 hours, we will have achieved something big”said Christian Vollmer, head of production for the German brand.
So you will understand, the difference is in the production. The Giga Press from Tesla are huge molding machines that greatly simplify the parts that make up the body of each individual car. To give you an idea, the rear subframe of a Tesla Model Y is made from a single piece instead of 70 pieces before the introduction of these “super” machines.
According to data provided by Tesla, this machine (produced by Idra in Italy) eliminates 300 robots on production lines, which significantly reduces the manufacturing time. This process is also copied by some Chinese car manufacturers. The method seems to work successfully and Tesla has already confirmed that a development of these machines will be used in the production of the Cybertruck – the current Giga Press model weighs 2.7 tons, the next one should weigh almost four tons.