Tesla (TSLA) is now earning eight times more per car than Toyota, and they are starting to notice back in Japan.
The list of things that could have led to Tesla’s demise used to be longer than my arm. For most investors, the amount of money that the company was losing was at the top of that list.
Not only is it not on top anymore, it’s not even on the list.
Over the last two years, Tesla has been able to consistently deliver profits every quarter with increasingly impressive free cash flow, which reached a record of over $3 billion last quarter.
For years, many automotive investors decided to invest in legacy automakers instead of Tesla because they would deliver millions more vehicles than Tesla and make money doing it.
While it’s still true that some of the biggest automakers, like Toyota, deliver millions more vehicles than Tesla, it’s not true that they necessarily make more money doing so.
For example, Tesla reported $3.29 billion in net profit last quarter compared to Toyota earning 434.2 billion yen (roughly $3.15 billion USD). That’s despite Toyota delivering almost eight times more cars than Tesla during the same time.
This milestone of Tesla beating Toyota in earnings during a quarter is especially impressive when you consider that just a decade ago, Toyota owned about 3% of Tesla with just a $50 million investment. Now Tesla generates $50 million in free cash flow almost every other day.
While Toyota is still only tentatively entering the battery-electric vehicle space, people are starting to see times changing in Japan since the Nikkei, the country’s biggest business newspaper, led with “Tesla earns 8 times more profit than Toyota per car.”
Electrek’s Take
While it is making waves in Japan, it feels like the Japanese auto industry might still have their head in the sand.
That’s partly because Tesla beating Toyota on earnings is partially due to the latter seeing earnings go down due to “increased material and electricity costs for its suppliers.”
But personally, I think the trend of Tesla catching up to Toyota’s earnings might be one that will keep going. To me, it’s as simple as one producing compelling all-electric vehicles in large volumes while the other isn’t.
Now that trend might not currently be reflected in Tesla’s stock price, but that’s another story entirely.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
UPDATE: telematics announcement.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
“XCMG remains committed to advancing engineering technology to empower a sustainable future. Our mission is to deliver efficient, intelligent, and eco-friendly lifecycle solutions for global clients,” said Mr. Yang Dongsheng, Chairman of XCMG Group and XCMG Machinery. “Today, 19% of our product portfolio comprises green innovations under our ‘Green Mountain’ new energy line, with full electrification across all series underway.”
On today’s troubling episode of Quick Charge, we explore all the troubles befalling Tesla (and TSLA stock) in the month April – with top executives fleeing the ship, demand plummeting, sales slipping, government incentives at home and abroad under threat, and a raft of receipts brought on by an OpenAI lawsuit hitting the brand, it’s already a bad month for Elon … and there’s still 20 more days to go!
None of this even touches on the $43 million “backlogged” rebate scandal Tesla’s facing in Canada that’s being blamed for people’s negative attitudes about the brand (ha!) or the fact that neither the long-promised Roadster 2.0 or the Tesla Semi will see production anytime this year, either.
The word you’re looking for when you think of Tesla these days is, “cooked.”
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Renewable developer Vesper Energy has cut the ribbon on Hornet Solar in Swisher County, Texas, one of the largest single-phase solar farms in the US.
As Electrek reported in January, the 600-megawatt (MW) Hornet Solar includes over 1.36 million modules covering more than 6 square miles. The project will contribute more than $100 million in new tax revenue to Swisher County and deliver 600 MWac of energy–enough to power 160,000 homes annually.
January 30, 2025: “The seamless coordination between our team and our EPC partner, Blattner, has enabled us to remain ahead of schedule and on budget while ensuring quality throughout the process,” said Juan Suarez, co-CEO of Irving-based Vesper Energy.
Hornet Solar uses bifacial solar panels mounted on a single-axis tracking system to maximize efficiency. The solar farm is connected to Oncor Electric’s transmission system within ERCOT and is contracted to provide power to four off-take partners through individual Virtual Power Purchase Agreements (VPPAs).
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The Hornet Solar project in the Texas Panhandle is on track to be fully online by spring 2025.
Texas is a utility-scale solar leader in the US, with a ranking of No. 2 and 37,713 MW currently installed. It’s projected to install 51,144 MW over the next five years and move into the No. 1 spot, according to the Solar Energy Industries Association (SEIA). The total solar investment in the state is $45.2 billion.
On January 21, the SEIA, Conservative Texans for Energy Innovation (CTEI), Advanced Power Alliance (APA), and the Texas Solar + Storage Association (TSSA) reported that existing and expected utility-scale solar, wind, and battery storage projects will contribute over $20 billion in total tax revenue – and pay Texas landowners $29.5 billion – over the projects’ lifetimes.
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