Tesla has been building out its manufacturing lines during this time, which is extremely capital intensive. Remember when the Model 3 was just being rolled out, and how that almost killed them?

So has Toyota (and most other auto manufacturers).

Tesla's gross margin is 25%, Toyota's gross margin is 15%.

And at one time Porsche progits were higher than their revenue (look it up, that was caused by their VW shares exploding in value). Ferrari is more profitable than, say, Hyundai. Different market segmentd have different profit margins, and Toyota actually can build cars with retail prices below 30k.

Do they still make a large portion of profit from selling carbon credits though?

No. In their latest filing[1], automotive regulatory credits are around 1% of revenue.

1. https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/0000...

Revenue =|= profits. Now, if you are interested, devide what ever that revenue was by Tesla's profits. Because those credits have a zero cost behind them. And those credits will go away with every EV those other brands build and sell.

If you look at the SEC filing it's 8% of profits. Though Tesla isn't trying to be particularly profitable right now. They've been spending tons of money on new factories so they can scale up production.

Credits aren't pure profit. You have to build and deliver a car to get them, so the 1% number of the parent comment is much more relevant than your 8% number.

Don't you have to include the shares outstanding in your calculation? Your analysis seems to assume the total shares is the same between the two companies.

No; the “PS” in “EPS” stands for “per share.”

Tesla EPS growth: 94.96%, 660.27% Toyota EPS growth: 15.49%, 6.95%

The market looks to the future. A company with 95% earnings growth deserves much higher P/E than a company with 16% earnings growth.

Tesla and BYD are clearly dominant players in a rapidly growing EV market.

Toyota is a laggard among other laggards. With a single EV only introduced for sale this year they are behind pretty much everyone.