Just $36 now separates Tesla and Toyota in profitability per vehicle sold. An analysis by Nikkei Asia based on the automakers’ financial data estimates that Tesla earned $2,140 per vehicle, compared with $2,104 for the Japanese group, over the 12 months ending in March 2026.
Tesla now earns far less on each car as Toyota closes in
Toyota’s profit per vehicle fell by around 20%, but the company still moved close to the top spot because its decline remained less severe than Tesla’s. Strong hybrid sales helped the Japanese automaker offset weakness in the electric vehicle market, while U.S. tariffs reduced its operating profit by approximately 1.38 trillion yen (about $9 billion) during the latest fiscal year. Just one year earlier, more than $600 separated Toyota from Tesla.
Tesla, meanwhile, saw its average profit per vehicle fall 40% from $3,438 in the previous period. The comparison with the more than $6,000 achieved during its strongest years shows how dramatically market conditions have changed. Growing competition and the need to keep prices attractive have erased much of the advantage Tesla built during the early global expansion of electric vehicles.
The U.S. market created further difficulties after the federal government ended the $7,500 tax credit for electric vehicle purchases. Tesla also generated less revenue from selling regulatory credits to other automakers, with the total falling from around $2.8 billion in 2024 to $1.7 billion in 2025. The company had to offset those lower earnings while Chinese brands continued to expand their lineups across several markets.
The ranking does not directly measure the industrial profit generated by each individual car. Nikkei divided the companies’ combined net income over four quarters by their worldwide sales volumes, which means the calculation also includes energy operations, services, and other revenue sources. The result still provides a comparison of each automaker’s overall financial efficiency, but it does not represent the actual margin generated from the sale of a single vehicle.
BYD ranks third behind Tesla and Toyota, although its net profit fell 55% in the quarter between January and March. Changes to Chinese incentives and intense pricing pressure reduced the profitability of a business that continued to grow rapidly in sales terms. Stellantis and Ford, meanwhile, fell below zero during the latest period after both generated around $925 per vehicle in the previous year.
Tesla has therefore retained the top position for a fifth consecutive year, but it no longer enjoys the wide lead that once separated it from traditional automakers. Toyota could overtake the company even without a lineup dominated by electric vehicles should Tesla’s profitability continue to decline at the same pace.
