Toyota Motor stock is experiencing its most successful week since 2009, driven by the company’s plans for next-generation electric vehicles and the approval of its new leadership, including former CEO Akio Toyoda as chairman. Toyota’s stock reached a new 52-week high on the New York Stock Exchange, closing at $168.18 per share, an increase of 1.6% during intraday trading and approximately 13% for the week.
If the stock maintains its current momentum, it will be the best week for Toyota since April 2009 when it saw a 14.5% increase. This would also mark only the third double-digit weekly gain in over 20 years.
The significant rise in the stock price reflects the additional details revealed about Toyota’s electric vehicle strategy, which has previously faced criticism for not being aggressive enough. Prior to its annual meeting, the company outlined plans to develop a new generation of EVs to compete with industry leaders Tesla and BYD. Toyota plans to launch these next-generation EVs starting in 2026 and aims to introduce vehicles featuring advanced “solid-state batteries” by 2027 or 2028.
Solid-state batteries offer benefits such as lighter weight, higher energy density, extended range, and lower cost compared to current lithium-ion batteries used in EVs.
Takero Kato, president of BEV Factory, stated that Toyota is targeting a driving range of 1,000 kilometers (620 miles) for its EVs. The company aims to produce around 1.7 million vehicles by 2030.
Morgan Stanley analyst Shinji Kakiuchi praised Toyota’s proactive disclosure of its new tech strategy and emphasized the need for quantitative disclosure on EV profitability. This positive response further reinforces the perception that Toyota is not falling behind in the realm of electric vehicles.
Additionally, Toyota shareholders voted in alignment with the company’s recommendations, approving its new leadership and board, including the appointment of CEO Koji Sato as a director and Akio Toyoda as chairman. Shareholders also rejected a proposal requiring Toyota to review its climate-related lobbying activities.
Toyota’s stock has experienced a year-to-date increase of approximately 23%, reflecting the recovery of the auto industry from the COVID-19 pandemic and supply chain challenges that led to historically low vehicle inventory levels. While Toyota’s gains are significant, they place the company in the middle of Japanese automaker stocks, trailing behind Tesla, whose shares have more than doubled in 2023.
In comparison to Toyota, other automaker stocks have performed as follows this year:
– Include performance comparison chart *
It is crucial to note that shares of these companies are traded in the U.S. as American depositary receipts.
Overall, Toyota’s stock surge demonstrates its commitment to future electric vehicle development and strong leadership under Akio Toyoda as chairman, positioning the company for continued success in the evolving automotive industry.
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