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New Toyota CEO tackles EV profitability with renewed vigor

(Credit: Toyota)

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New Toyota CEO, Koji Sati, has announced a new three-part plan to help make the company’s EV strategy profitable as soon as possible.

When Akio Toyoda announced that he would be retiring from his long-held post of CEO at Toyota, the world’s largest automaker, many investors were left uncertain about the company’s future, yet hopeful that a new executive could breathe fire into the historic auto giant. And that is precisely what has happened with Toyota’s new CEO, Koji Sato, who has more aggressively pursued electric vehicles. Now, the new CEO has announced his plan to make Toyota’s EV strategy profitable as quickly as possible.

Sato’s new EV plan is quite a shift compared to the one previously announced by Akio Toyoda. Toyota now plans for an annual production capacity of 1.5 million EVs by 2025 and 3.5 million by 2030. And while this shift sounds like a significant shift for the previously EV-hesitant company, Sato is now tasked with making it a reality.

As part of this quest, Sato has outlined his new profitability plan, which Automotive News initially reported.

Toyota’s profitability plan has three parts, and the first step has already been completed; introduce the company’s first electric offerings in top global markets. Following this step, which at the very least has provided the Japanese automaker with many lessons, Toyota must implement changes, which will be coming in its next round of upcoming EVs. Third and finally, by introducing its new EV platform by 2026, Toyota aims to double the range its EVs are capable of, increase its revenue streams, and half the cost of EV development.

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Toyota’s focus on profitability is undoubtedly unique for the company. As noted by Automotive News, Toyota has traditionally been a leader in profitability, consistently achieving a margin of 10%. But with the advent of Tesla’s now industry-leading ~20% margins, Toyota is under renewed pressure to improve.

Luckily, the company’s planned increase in revenue streams is set to rejuvenate its balance sheet, but it remains unclear how customers will take to the required changes.

As part of its second step toward EV profitability, Toyota will introduce its “Arena software system,” which will dramatically increase the monetization of vehicles after purchase. Some of these changes have already been seen on newer Toyota vehicles, including a monthly subscription system for remote air conditioning and other phone controls. Yet with a growing contingent of automakers looking to do the very same thing, customers may have no choice but to go along.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla adjusts crucial feature as winter weather arrives

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Credit: Tesla Cybertruck Owners Club Forum user CybertruckCovers

Tesla has adjusted the functionality of a crucial climate feature as Winter weather has started to arrive throughout some parts of the United States. The new feature was highly requested by owners.

Tesla has a Cabin Overheat Protection feature that helps keep the temperature regulated if it reaches a certain threshold. Inversely, it can be used in cold weather as well, which will automatically warm the cabin if it sinks to a temperature that is too low for the owner’s comfort.

This is a great way to keep the cabin either warmed up just enough or cooled down just enough so that it never gets too hot or too cold. Extreme temperatures could damage certain parts of the vehicle or damage personal belongings that are kept inside the car.

Overheat protection is a great thing to have in hot climates like Arizona or Texas, especially with the Premium trims of the Model 3 and Model Y, which feature a glass roof.

Many owners appreciate the feature, but they argue that using it at home will utilize too much energy, especially during extreme temperatures. For a while, many Tesla fans have requested an option to disable this feature when the car is parked at home, which the company recently added, according to Not a Tesla App.

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The feature is part of Software Version 2025.44.3, and the release notes state:

“You can now choose Exclude Home when Cabin Overheat Protection or No A/C is enabled.”

Tesla has been great at listening to what owners want with new features, and this is one that will reserve some charge and prevent unnecessary utilization of available power, especially as the car is parked at home. If owners want to condition the cabin or get the car ready for operation with a comfortable interior, they can utilize the Tesla app to adjust the climate.

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Tesla CEO Elon Musk sends rivals dire warning about Full Self-Driving

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Credit: Tesla

Tesla CEO Elon Musk revealed today on the social media platform X that legacy automakers, such as Ford, General Motors, and Stellantis, do not want to license the company’s Full Self-Driving suite, at least not without a long list of their own terms.

“I’ve tried to warn them and even offered to license Tesla FSD, but they don’t want it! Crazy,” Musk said on X. “When legacy auto does occasionally reach out, they tepidly discuss implementing FSD for a tiny program in 5 years with unworkable requirements for Tesla, so pointless.”

Musk made the remark in response to a note we wrote about earlier today from Melius Research, in which analyst Rob Wertheimer said, “Our point is not that Tesla is at risk, it’s that everybody else is,” in terms of autonomy and self-driving development.

Wertheimer believes there are hundreds of billions of dollars in value headed toward Tesla’s way because of its prowess with FSD.

A few years ago, Musk first remarked that Tesla was in early talks with one legacy automaker regarding licensing Full Self-Driving for its vehicles. Tesla never confirmed which company it was, but given Musk’s ongoing talks with Ford CEO Jim Farley at the time, it seemed the Detroit-based automaker was the likely suspect.

Tesla’s Elon Musk reiterates FSD licensing offer for other automakers

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Ford has been perhaps the most aggressive legacy automaker in terms of its EV efforts, but it recently scaled back its electric offensive due to profitability issues and weak demand. It simply was not making enough vehicles, nor selling the volume needed to turn a profit.

Musk truly believes that many of the companies that turn their backs on FSD now will suffer in the future, especially considering the increased chance it could be a parallel to what has happened with EV efforts for many of these companies.

Unfortunately, they got started too late and are now playing catch-up with Tesla, XPeng, BYD, and the other dominating forces in EVs across the globe.

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Tesla backtracks on strange Nav feature after numerous complaints

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Credit: Tesla

Tesla is backtracking on a strange adjustment it made to its in-car Navigation feature after numerous complaints from owners convinced the company to make a change.

Tesla’s in-car Navigation is catered to its vehicles, as it routes Supercharging stops and preps your vehicle for charging with preconditioning. It is also very intuitive, and features other things like weather radar and a detailed map outlining points of interest.

However, a recent change to the Navigation by Tesla did not go unnoticed, and owners were really upset about it.

Tesla’s Navigation gets huge improvement with simple update

For trips that required multiple Supercharger stops, Tesla decided to implement a naming change, which did not show the city or state of each charging stop. Instead, it just showed the business where the Supercharger was located, giving many owners an unwelcome surprise.

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However, Tesla’s Director of Supercharging, Max de Zegher, admitted the update was a “big mistake on our end,” and made a change that rolled out within 24 hours:

The lack of a name for the city where a Supercharging stop would be made caused some confusion for owners in the short term. Some drivers argued that it was more difficult to make stops at some familiar locations that were special to them. Others were not too keen on not knowing where they were going to be along their trip.

Tesla was quick to scramble to resolve this issue, and it did a great job of rolling it out in an expedited manner, as de Zegher said that most in-car touch screens would notice the fix within one day of the change being rolled out.

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Additionally, there will be even more improvements in December, as Tesla plans to show the common name/amenity below the site name as well, which will give people a better idea of what to expect when they arrive at a Supercharger.

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