Japanese car manufacturer Toyota Motor (NYSE:TM) reported record-high global sales and production numbers on Thursday for the fiscal year ending March 31, buoyed by strong demand and the resolution of previous semiconductor supply issues.
The report represents the polar opposite of the latest Tesla (NASDAQ:TSLA) report, which showed that recent price cuts by the Elon Musk-led company continue to take their toll.
Toyota delivers strong results
In its April 25 report, Toyota said that its parent-only global sales increased by 7.3% year-on-year to 10.31 million units, marking the first time sales have surpassed the 10 million threshold. Production also rose by 9.2% to 9.97 million units.
Yet, according to the Mid Japan Economist newspaper, Toyota plans to delay the launch of its electric vehicle (EV) production in the U.S. and reduce domestic production.
The decision comes as part of the company’s efforts to "ensure product safety and quality following a series of scandals at its group firms."
Despite the global growth, Toyota experienced a downturn in March, particularly in China—the world’s largest auto market—where it faced intense competition.
Global sales in March fell by 2.1% from the previous year to 897,251 units, and production dropped 10.3% to 807,026 units.
Meanwhile, the company saw a significant increase in its global battery EV sales, which soared more than threefold to 116,654 units for the year.
Looking ahead, Toyota intends to push back the start of its EV production in the U.S. to the spring of 2026, a notable deviation from the original plan of 2025, the Mid Japan Economist’s report said.
It also mentioned that the car manufacturer plans to incorporate a strategic "pause" period into its operations to focus on enhancing quality and safety.
… while Tesla struggles
In stark contrast to Toyota, Tesla’s latest quarterly results were the gloomiest in a long time, as widely expected by analysts.
The EV giant reported a significant 9% drop in first-quarter revenue, marking its largest decline since 2012, as it continues to grapple with the impacts of ongoing price reductions.
In particular, Tesla reported adjusted earnings per share (EPS) of 45 cents, missing the consensus projection of 51 cents. It generated $21.3 billion in revenue, down from $23.33 billion in the year-ago period and below the Wall Street’s forecast of $22.15 billion
Net income also took a hit, decreasing by 55% to $1.13 billion, or 34 cents per share, down from $2.51 billion, or 73 cents per share, a year ago.
This decline in sales was sharper than the one Tesla experienced in 2020, which was attributed to production disruptions during the Covid-19 pandemic. Tesla’s automotive revenue saw a 13% year-over-year decrease to $17.38 billion in the first three months of 2024.
Earlier in the month, Tesla had already noted an 8.5% year-over-year reduction in vehicle deliveries for the first quarter.
Despite the downturn, Tesla's stock responded positively following the earnings report, largely due to CEO Elon Musk's announcement of an accelerated timeline for the company’s much-anticipated affordable EV.
To be more specific, Musk revealed that the production of new, more affordable vehicles could start "early 2025, if not late this year," a noteworthy advancement from the previously anticipated second half of 2025.
Musk also highlighted Tesla’s ongoing investments in AI infrastructure and mentioned ongoing discussions with "one major automaker" to license its Full Self-Driving (FSD) driver assistance system.