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We’re 6 days from the start of ASOTU CON and we’re talking about Toyota’s plateau plans to invest all of that profit. We’re also covering Tesla’s ‘pay to unlock range’ on some Model Y’s as well as GMs efforts to recruit displaced Tesla interns.
Show Notes with links:
- Toyota's CEO Koji Sato is celebrating a triumphant first year with record-breaking profits, setting the stage for massive investments in future technologies.
- The company’s operating profit soared 77% this quarter, with plans to re-invest $11.24 billion into electrification, AI, and software advancements and $2.6B in shoring up their supply chain.
- This investment is the cause for Toyota’s forecasting a dip in profits for the fiscal year ending March 2025, prioritizing sustainable long-term growth.
- Toyota achieved a stellar 10% operating profit margin this quarter, with global revenue up 14% to $73.17 billion with sales of Toyota’s hybrids, which are as profitable as gasoline models, spiked by 32%, with hybrids now making up a third of global sales.
- CEO Koji Sato stated "We need this time of plateau for our long-term future growth. We would like to make proactive efforts for future sustainable growth."
- Tesla has introduced a "pay-to-unlock" feature for RWD Model Y owners, offering up to 60 additional miles. The update aligns older Model Ys with the new 320-mile range of current models, addressing slow sales in the first quarter.
- Tesla sets the price to unlock additional range on RWD Model Y vehicles between $1,500 and $2,000, targeting recently built models.
- Vehicles eligible for the upgrade are those made in the last few months with the same nickel batteries and charging curves as the Long Range Model Y.
- While beneficial for long trips, the cost-effectiveness of the upgrade is less clear for city drivers due to the high price.
- When explaining the strategy behind the new feature amidst regulatory challenges, Elon Musk candidly quipped "We have to pay the bills somehow."
- GM seems to be seizing an opportunity amid Tesla's staff cuts, actively recruiting interns displaced by Tesla's recent downsizing efforts, offering roles in software development as part of its strategic talent acquisition.
- Laura del Amo from GM extended an invite via LinkedIn to those affected by Tesla's internship program cuts.
- Del Amo stated "We believe in the strength of our automotive community and are keen to integrate diverse talents into our team.”
- GM has a history of hiring former Tesla executives specifically to enhance its expertise in battery and manufacturing operations.
- Despite the aggressive recruitment strategy, official comments from GM and Laura del Amo remain pending.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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