Technology

Tesla Motors Inc Keeping All Its ‘Eggs In One Basket’: Toyota

Toyota, which has been sneering at electric vehicles for a long time in its ads, now specifically targets Tesla Motors

Tesla Motors, or in general, electric cars, have been on the receiving end of criticism in Toyota’s ads and marketing for quite some time now, and there is no sign of the Japanese automaker letting it go any time soon. First two ads by Toyota mocked electric cars for range anxiety, and now, a Toyota executive has derided Tesla Motors for putting “all its eggs in one basket” by the making only battery-electric cars.

Tesla Motors Inc Keeping All Its 'Eggs In One Basket': Toyota

Carter disappointed with Musk’s comment

Bob Carter, senior vice president of Toyota’s U.S. operations, made these remarks about Tesla during a presentation last week at the J.D. Power Automotive Summit in San Francisco, according to Ward’s Auto. However, the official press release about Carter’s speech that was sent to the media does not include the criticism of Tesla, says Business Insider.

Talking about Tesla, Carter said he is disappointed by the comments made by CEO Elon Musk that hydrogen powered cars should be called “fool-cell vehicles,” adding that such comments reflects Musk’s insecurity over the prospects of the plug-in electric vehicles.

“If I had all my eggs in one basket,” Ward’s reports him saying, “I might be making the same comments.”

Toyota profitable, Tesla not

Carter said the Mirai is an electric vehicle, but the electricity is produced on board compared to off-grid. He added that in simple words, it means the Toyota fuel cell system in the new Mirai is a better battery.

To date, Toyota is the most profitable automaker globally. However, Tesla’s CEO said during a Q&A after the Detroit Auto show that his company might not see a profit on a GAAP basis until 2020. The EV manufacturer has posted profits through various standards which have been questioned by some analysts and electric car advocates.

Tesla Motors stock is down by over 10% in 2015 after rallying 400% in the past two years. Analysts list many factors contributing to the decline, such as declining oil prices and rising competition from big brands. However, one reason cited by experts which could hurt Tesla most is the declining popularity of the brand among luxury car buyers.

On Wednesday, Tesla shares closed down by over 3% at $199.37.