Tesla’s ability to adopt offbeat strategies and novel manufacturing solutions, both within its factories and throughout its vehicle designs, has seemingly outstripped Toyota’s long-established prowess. However, according to Yoshio Nakamura, Toyota’s deputy chief of global production, the story may be set for an exciting plot twist.

In a recent conversation with Automotive News, Nakamura expressed a sincere admiration for Tesla’s disruptive technology. Rather than regarding it as a threat, he views this innovative advantage as a source of inspiration, a motivational challenge for Toyota to roll up its sleeves and claw back lost ground. Nakamura, however, is quick to clarify that this will not result in an outright mimicry of Tesla’s success.

“Of course, we admit Tesla has wonderful technology. But that just motivates us to work harder to catch up. If we are to learn from them, it won’t be a copy. We will improve upon them through kaizen,” Nakamura stated, alluding to the Japanese philosophy of continuous improvement, one that has been integral to Toyota's success over the years.

There’s an undeniable shift in the winds of the automotive industry, spurred on by the audacious startups that have embraced the electric vehicle movement with open arms. Free from the burden of legacy technologies and outdated supply chains, these nimble newcomers have proved that they can produce and sell electric vehicles at scale and profitably. This includes Tesla, whose Model 3 and Model Y have solidified their positions as best-sellers in the electric market.

This seismic shift could well be christened as the “Tesla Shock.” According to industry insiders, the effects of this shock were felt most acutely by Toyota, especially when Tesla’s Model Y dethroned the once ubiquitous Toyota Corolla as the world’s best-selling car in Q1 2023.