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- Toyota president Akio Toyoda shot directly at Elon Musk and Tesla during a presentation last week.
- Toyoda, whose grandfather founded the legendary Japanese carmaker, said Tesla is like a chef with a recipe.
- “They haven’t created a real business or a real world yet,” he said.
- “Visit the Business Insider home page for more stories.
If running a car business is like running a restaurant, Toyota has a full business while Tesla is just a chef with a few recipes, says the Japanese firm’s president.
Akio Toyoda, grandson of the automaker’s founder, made the comparison during Toyota’s second-quarter financial presentation on Friday as he discussed plans to electrify the entire range.
“What we have and what Tesla doesn’t have are the units in operation – more than 100 million vehicles around the world,” he said, before embarking on the similarity of food service.
“Tesla’s business, if I may say, is an activity like … you can use the analogy between cooking and chef, I think,” he continued. “The kitchen and the chef, they haven’t created a real business or a real world yet, but they’re trying to swap recipes. And the chef is saying that, ‘Well, our recipe will become the world standard in the future.” think this is the kind of business they have. “
Toyota, on the other hand, has “a real kitchen” and also a “real chef,” Toyoda said, a demand favored by doubling the company’s full-year profit prospects. For comparison, Tesla says it will build 500,000 cars this year, while Toyota’s annual sales exceeded 10 million worldwide in 2019. Tesla also needs to make an annual profit.
Despite the mismatch in sales, Tesla reaped a searing market value of nearly double that of Toyota. It is not lost on Toyoda.
“And of course, looking at the current share price, we’re losing against their valuation,” he said. “But when it comes to products, we have a complete menu that will be chosen by customers.”
In addition to Toyota, a plethora of mainstream automakers have slowly begun to put all their strength behind their EV development. The German Volkswagen, whose executives have also spoken openly about Tesla’s leadership in the industry.
Read more: Volkswagen’s Tesla competitor is finally here: Here is the ID.4, a cheaper alternative to Model Y designed to sell against America’s most popular cars
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