Tuesday Ticker: Tesla tops Toyota’s Q3 profits; Carvana e-commerce share price slashed

Toronto, Ontario ⁠In this weekly financial-watch report, Tesla’s Q3 results are compared with Toyota’s and e-commerce platform Caravana sees its share price cut in half. 

Tesla tops Toyota

Tesla could have earned eight times as much per vehicle as Toyota in Q3, reports Asian newspaper Nikkei. 

A report from Electrek claims Toyota delivered eight times as many cars as Tesla during Q3 2022. Nikkei claims its analysis shows Toyota outsold Tesla at a 7:1 ration in Q3.

This is the first quarter in which the electric automaker has beaten Toyota’s profits since going public in 2010. 

Tesla reported US$3.29 billion net profit for Q3 2022; Toyota earned US$3.15 billion, based on the average exchange rate of Japanese yen to American dollars.

It’s estimated that factors like high material costs and the OEM’s assistance to suppliers⁠ pushed down quarterly operating profits; Toyota covered suppliers’ increased material and electricity costs from July through September. The automaker also took a one-time financial hit due to the closure of its Russian operations. 

Still, investors maintain that “the decreased profit in [Q3] does not equate to a decline in Toyota’s actual earnings potential,” according to Kota Yuzawa from Goldman Sachs Japan. 

Toyota beat Tesla in terms of operating profit, reporting US$4.08 billion while Tesla reported US$3.69 billion. 

Elevator crash

Shares of e-commerce platform Carvana⁠—a company known for performing its deliveries via vehicle ‘vending machines’—dropped last week following lower-than-expected Q3 financial results.

Shares of Carvana closed at US$14.35 per share on Nov. 3. On Nov. 4, following the company’s Q3 financial results announcement, shares closed at US$8.76 per share.

As of Nov. 21, shares of Carvana have dropped more than 52 percent since Q3 results went live.

The company touts itself as the leading e-commerce platform for buying and selling used cars. It reported revenue of US$3.386 billion for Q3 2022⁠⁠—2.7 percent down year-over-year and US$300 million lower than analysts’ estimates. 

Further, it sold 102,570 units in Q3; down 8.4 percent year-over-year.

The company also cut 1,500 employees from its roster last week; that’s eight percent of the Carvana workforce.

“We’re building our plans around assumptions that the next year is a difficult one in our industry and the economy as a whole,” said CEO and co-founder of Carvana, Ernie Garcia. 



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