On Wednesday, Toyota stock solidified a nearly 15% gain for its best week in 14 years on news of new leadership, EVs, and next-gen batteries.
Toyota Motor Corp (NYSE: TM) is set for its best week since 2009 after the automobile giant revealed plans to produce next-generation batteries for its electric vehicles. The company’s stock also climbed on shareholder satisfaction with the CEO and chairman positions.
On Thursday, Toyota stock hit $169.07, cementing a high not seen in 52 weeks, before shedding some weight and closing at $168.18. According to data from MarketWatch, Toyota stock has climbed nearly 15% in the last 5 days and 18% in the past month. TM has also added 23.14% year-to-date (YTD) and 23.75% in 3 months. The current week is Toyota stock’s best week since 2009 when it jumped by 14.5%.
Toyota Stock Reacts to News on Electric Vehicles and New Leadership
On Tuesday, Toyota stock also rose 5% on the Tokyo Stock Exchange after announcing electric vehicles and next-gen batteries. The company plans to launch electric vehicles in 2026, with batteries that will rival automakers like Tesla Inc (NASDAQ: TSLA). Toyota also said it would manufacture the vehicles under BEV Factory, a new EV division.
In a recent presentation, BEV Factory president Takero Kato said the company would produce 1.7 million electric vehicles latest by 2030.
Toyota also says it will produce vehicles with solid-state batteries by 2027. The company has reportedly discovered a new way to develop more durable batteries. Toyota is now reviewing battery development for its previous hybrid electric vehicles (HEV) and the standard electric vehicles.
Although expensive, solid-state batteries promise increased efficiency as they charge faster and churn out more energy. They are also unlikely to inflame. Using these batteries for its EVs may considerably raise prices, making the cars more costly than the competition. However, users may enjoy better utility as a full charge could be completed in under 10 minutes, according to Toyota. Kato already noted that Toyota plans a driving range of 1,000 kilometers (621 miles) for the upcoming EVs.
In addition to news on batteries and electric vehicles, shareholders voted to keep former Toyota CEO Akio Toyoda – grandson of Toyota Industries Co. founder Sakichi Toyoda – as chairman of the board. Shareholders also accepted Koji Sato’s position as CEO.
Toyota’s 23% YTD jump trumps gains from auto giants Volkswagen and General Motors, with 15% and 13%, respectively. Regardless, Toyota stock has fallen behind other automakers like Ford Motor and Honda, each up 25% and 40%, respectively. Tesla stock is the largest auto gainer at 108% in 2023.
Toyota’s Electric Vehicles
The auto giant has come under much criticism for its reluctance to compete eagerly with other EV makers. Toyota’s pioneer hybrid Prius model was launched in 1997 when there was little to no competition in that regard. Previously, Toyota said it was not ready to enter the world of EVs, even adding that the public was not prepared for the technology. However, Toyota is now fully in the race as its deeply into battery research. The company announced it would invest $35 billion into electric vehicles, and have 30 models ready by 2030.