📜 WAR BRIEFING

The Battle Rages On — But This Round Was a Blowout

You voted. The results are clear. Toyota didn’t just win — they dominated with 87% of the vote. 

Toyota: 87% | Tesla: 13%

And it’s not just a one-time victory. Tesla’s recent struggles — plummeting sales, deep price cuts, and rising competition — are exposing serious flaws in their strategy. 

Meanwhile, Toyota’s long-term approach is proving unshakable.

In this email we’ll dicuss:

• How Toyota is crushing Tesla with strategy — not hype.

• The critical mistakes that are putting Tesla on defense.

• What every business owner can learn from Toyota’s long game.

Let’s break it down (and get you Toyota’s winning playbook to implement in your business).

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🏛️ ORIGINS OF WAR

Toyota’s Rise: From Humble Beginnings to Global Dominance

Toyota wasn’t always the industry giant.

Founded in 1937 by Kiichiro Toyoda, the company started as an offshoot of a textile business. 

The entire story is fascinating to me because they didn’t take off until after WWII. The country was war-torn. Resources were extremely limited. They had to get extremely creative and innovate to survive.

But the real transformation started in the 1950s, when Toyota learned an unexpected lesson — from an American:

W. Edwards Deming (One of my personal heroes)

Deming was an American statistician and quality control expert who was attempting to teach his methods in the U.S. but was completely ignored until he found a willing audience in Japan.

He taught Toyota the principles of constant and never-ending improvement (Kaizen), statistical process control, and total quality management.

Toyota implemented his ideas ruthlessly, leading to the creation of the Toyota Production System (TPS) — probably the most efficient manufacturing process in the world.

By the 1980s, Toyota had overtaken American automakers on their own turf.

Here’s what happened:

1. While Detroit focused on big cars and high-volume production, Toyota focused on lean manufacturing, precision, and quality.
   

2. The 1970s oil crisis crushed demand for gas-guzzlers, and Toyota’s fuel-efficient, reliable cars were exactly what consumers wanted.
   

3. The U.S. auto industry dismissed Toyota as a "cheap Japanese import crap" —until they were suddenly outselling all American brands.

By the late 80s, Toyota was dominating the global market — not by being first, but by being better.

While Tesla is gambling on the future, Toyota built an empire by mastering efficiency, profitability, and quality.

That’s why they’re still standing at the top today.

🧠 STRATEGY STEVE’S INSIGHTS

Toyota’s Unshakable Foundation: Why They Keep Winning

Toyota didn’t win this battle by being flashy, making bold promises, or betting the farm on hype.

They won by building an unshakable foundation of efficiency, quality, and long-term thinking.

Here’s why I think Toyota is dominating while Tesla scrambles:

1️⃣ Toyota’s Strength Is in Its Systems, Not Just Its Cars

Toyota mastered Kaizen (constant and never-ending improvement) and the Toyota Production System (TPS), making their operations faster, cheaper, and more precise than any other automaker.

They don’t just “launch and pray” like Tesla — they refine, perfect, and then scale.

In the marketing world, we call this: "Nail it, then scale it."

Too many businesses try to scale chaos.

Toyota proves that the right system beats the right idea — every time.

2️⃣ They Prioritize Profitability Over Hype

I can’t tell you how difficult it is to get some clients to even say the word “profit” under $10M. It irritates me to no end.

Toyota doesn’t chase growth at all costs.

They don’t need to slash prices to keep demand up — they just build cars that sell themselves.

Stable cash flow = power. While Tesla cuts prices and takes hits on margins, Toyota’s business model is predictable and profitable.

Remember this: Top-line revenue feeds egos. Profit feeds your bank account.

3️⃣ They Knew EVs Weren’t Ready for Mass Adoption

I like bold moves.

But the best study of life is how it is, not how we wish it was.

Instead of wishing everyone was chomping at the bit for EVs, Toyota let the market mature while still making money.

Tesla, on the other hand, is completely dependent on EV demand right now to stay afloat.

There’s a big difference between predicting the future and forcing the future.

4️⃣ They Build What People Want—Not What They Think People Should Want

Hybrids outsell EVs because they’re more practical.

Toyota realized this years ago, while Tesla ignored it.

Toyota didn’t force adoption—they waited for the market to shift before going big into full EVs.

Maybe someday history will show this was a poor choice.

But as of right now—the numbers tell us a different story.

🏆 WINNER’S PLAYBOOK

The Toyota Playbook: Five Strategies You Can Apply Today

1️⃣ Build a Process-Driven Business, Not a Personality-Driven One

You know the old saying, “don’t meet your heroes… most of them are douchebags.”

(or something like that)

But forget Musk and all his shenanigans for a second — if your business relies entirely on you, it’s fragile.

I’ve seen businesses fall apart overnight because one person said or did the wrong thing. When your brand depends on a single personality, you’re always one misstep away from disaster.

Toyota runs on systems, not a single visionary.

Fix inefficiencies, document processes, and build systems that scale underneath a brand—not a person.

2️⃣ Focus on Sustainable Growth, Not Just Revenue Spikes

Toyota never overextends itself. They scale strategically, not recklessly.

Almost daily, some entrepreneur tags me in a post about a new tactic, shortcut, or shiny object, asking if they should “try this next.”

The question alone tells me everything I need to know.

If you're looking for what to try next, it means you don’t have a consistent strategy.

Instead of chasing quick wins, build a business model that generates consistent revenue for years.

3️⃣ Prioritize Quality and Execution Over Speed

Being first doesn’t mean being the best. Tesla rushed EVs to market; Toyota perfected hybrids first.

The biggest lesson I took from Deming was his obsession with quality. He said,

“Quality ALWAYS wins in the long run.”

And he had the data to prove it in every division, in every company, in every country.

Toyota obsesses over execution and refinement—and it’s why they’re still leading today.

4️⃣ Diversify Revenue and Offerings

Toyota isn’t all-in on one thing. They make hybrids, gas cars, EVs, and even hydrogen vehicles.

If your business depends on one product or one traffic source, you’re vulnerable.

Market conditions shift. Build options before you need them.

5️⃣ Always Play the Long Game

Toyota is worth $296 billion because they’ve been playing chess for decades.

Short-term thinking kills businesses. Don’t burn out chasing trends — build something that lasts.

🎯 FINAL STRATEGIC MOVE

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See you Friday with the battle breakdown. Until then — adapt, strategize, and conquer.

⚔️ Stephen
The Obsessed Strategist