- Toyota President Akio Toyoda directly targeted Elon Musk and Tesla during a presentation last week.
- Toyoda, who tried to found the legendary Japanese automaker, said Tesla is like a chef with recipes.
- “They haven’t created a real business or a real world,” he said.
- “Visit the Business Insider homepage for more news.
If running a car company is like running a restaurant, Toyota has full control over the business, while Tesla is just a chef with some recipe, the Japanese company president said.
Akio Toyoda, the automaker’s great-grandson, made the comparison during Toyota̵7;s second-quarter financial presentation on Friday while discussing its plan to electrify its entire lineup.
“What we have and what Tesla doesn’t have are active units – more than 100 million vehicles around the world,” he said, before putting into the food service simulation.
He continued: “Tesla’s business, if I can say, is a job like – you can use the analogy between the kitchen and the chef. “Kitchen and cook, they haven’t created a real business or the real world, but they’re trying to swap recipes. And the chef is saying, ‘Wow, peacocks. Our formula will become the world’s standard in the future. ‘I think that’s the kind of business they have.’
Toyota, on the other hand, has “a real kitchen” and a “real chef,” Toyoda said, a statement added as the company doubled its full-year profit outlook. For comparison, Tesla says it will make 500,000 cars this year, while Toyota’s annual sales topped 10 million units worldwide in 2019. Tesla hasn’t made an annual profit either.
Despite the sales disparity, Tesla reaped an astonishing market value, almost double that of Toyota. That is not lost on Toyoda.
“And of course, when we look at the current stock prices, we are losing compared to their valuation,” he said. “But when it comes to products, we have the full menu that will be chosen by the customer.”
In addition to Toyota, many legacy automakers have slowly started to devote themselves to their electric vehicle development. Germany’s Volkswagen, with its chief executives, has also been frank about Tesla’s industry lead.
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