No BS ranking by units sold, revenue, net profit, and profit by unit sold.
uTube video…
The Numbers Tell the Truth: Who’s the Best Car Company in the World?
It’s not easy to figure out who is the best car company in the world. But we can rank the top automakers by how many vehicles they sell, how much revenue they bring in, what their net profit is and by how much profit they make on each vehicle they sell.
https://www.youtube.com/watch?v=ZoF741Lw954
The Captain
Interesting piece. I assume you were looking at the positions Tesla held. I noticed how high GM, #8, and, particularly, Ford, #4, rank in profit per vehicle, considering their campaigns to discontinue lower priced models, to raise their ATP and GP.
In net profit, GM ranks 6th, and Ford 7th.
Revenue Ford 5th, GM 6th.
Global units sold: GM 5th, Ford 8th.
Steve
Interesting piece. I assume you were looking at the positions Tesla held.
Absolutely! To hold a large position you have to make sure they will be around and prosperous for a very long time. Saying power is the key. These statistics give the best bird’s eye view of the industry. World wide sales in 2021 were 66.7 million cars. The top 10 sold 88.4% with Toyota accounting for 15.7%. Tesla got 1.4%.
Tesla is aiming for 10 million by 2030 which would match Toyota which is doable but to get there they need to add lower priced cars as their current pricing is in the luxury class and their profit per car matches Merceds and BMW. If their profit per car were to be cut in half, Tesla would still be ahead of fourth place Ford. Sounds pretty solid.
The Captain
Does the Tesla profit per car of nearly $6k include the revenue from the Full Self-Driving Capability option (currently $12k)?
Sorry, I have no idea how the fellow calculated that number. There is also the energy part of the business, I would guess he took that out.
Only a part of the FSD revenue goes to profit, some of it goes to Deferred Revenue.
In accordance with Generally Accepted Accounting Principles (GAAP), Tesla can only register a portion of the purchase price as income from FSD, while the remainder of the balance sheet is classified as a liability called Deferred Revenue. In Tesla’s case, FSD is not fully deployed, so the company still has to provide it to customers who bought it. As soon as Tesla delivers its promise, it will remove this obligation from its balance sheet, and recognize this amount as income.
https://www.tesmanian.com/blogs/tesmanian-blog/fsd-will-brin…
The Captain
What is FSD payment?
“Full Self-Driving capability is now available as a monthly subscription.
Meaning in accounting it has to be accrued.
Does the Tesla profit per car of nearly $6k include the revenue from the Full Self-Driving Capability option (currently $12k)?
Probably. But relatively few Tesla orders include the FSD option.
https://www.tesmanian.com/blogs/tesmanian-blog/fsd-will-brin…
“For three quarters of 2020, the Deferred Revenue balance attributable to FSD was $658 million. By calculating the quarter-to-quarter earnings ratio, Spark Spread got a recognizable percentage for each quarter.”
Scanning the article some 27% of buyers were getting the option in 2020.
The top 10 sold 88.4% with Toyota accounting for 15.7%. Tesla got 1.4%.
Tesla is a luxury/cult product, like a Merc or Bimmer, which have comparable GPs. Their price is going to limit their market penetration. If they cut price to increase volume, their GP will fall.
There are a lot more people around who can afford a Toyota.
Steve
Tesla is a luxury/cult product,
For the time being it is but the strategy is to work towards more affordable models but only when capacity permits. Asked about the 25K model, Musk said that they are not currently working on it, “Why add complexity when you are sold out of the models you already have?” For the time being carmakers are either capacity constrained or supply constrained (batteries, chips, nickel) while demand is strong.
Carmakers are in the driver’s seats! 
The Captain
Scanning the article some 27% of buyers were getting the option in 2020.
Latest info is about 11% - https://electrek.co/2021/08/31/tesla-survey-take-rate-full-s…
Back when it was only $3000, many more took the option.
Asked about the 25K model, Musk said that they are not currently working on it, “Why add complexity when you are sold out of the models you already have?”
Er… IIRC Henry Ford said something like that about customers wanting Fords in colors other than black.
Didn’t help him much, but helped the competition.
Didn’t help him much, but helped the competition.
Didn’t help the competition as much as Ford clinging to 1909 technology well into the 1920s.
At one point, around 1920, half of the cars in service in the world were Fords.
A few yeas ago, I finally got around to reading Richard Halliburton’s “Royal Road To Romance” about his trip around the world shortly after graduating college.
At one point, he journeys to the temples at Angkor Wat. The trip involved a steamer up a river, then across a lake. At the far side of the lake, there was no pier to disembark from the steamer. He had to transfer to a small boat, in somewhat rough weather, in the dark. When he finally reached shore, a car was waiting for him, a Ford. The middle of the Cambodian jungle, in the mid 1920s and the only car around was a Ford.
The Royal Road to Romance Hardcover
by Richard Halliburton
While the rest of Princeton’s Class of 1921 was busy matriculating into more “respectable” lives, Halliburton stuffed his diploma into a backpack and set off on what he hoped would be the adventure of a lifetime. As it turns out, his hopes were wildly understated.
Tag along with Richard Halliburton on this amazing journey through a world that is barely recognizable today. With just a few dollars in his pockets, Richard sneaks, mooches, and occasionally works his way from New Jersey to the farthest-flung corners of the world.
https://www.amazon.com/Royal-Road-Romance-Richard-Halliburto…
Now, Ford is all about maximizing price and profit per car, exactly the opposite of Henry’s business model.
Steve