Akio Toyoda, President and CEO, Toyota Motor Corp.
Kiyoshi Ota | bloomberg | Getty Images
Detroit – Toyota Motor Stocks concluded their best week since 2009 on Friday, as the automaker laid out an aggressive plan for all-electric vehicles of the future and company scion Akio Toyoda became leader of the Japanese company’s board.
Toyota shares closed on the New York Stock Exchange Friday at $164.35 per share, down 2.3% for the day but still up 10.6% for the week. This 5-day gain is the best week for the stock since April 2009 when shares rose 14.5%.
Such a height is not typical for a stock. It’s only the third double-digit weekly gain in more than two decades for relatively well-performing but otherwise ordinary stocks. Shares of the company are up 20% so far in 2023.
The positive rise this year comes as recent supply chain problems eased for automakers, including Toyota, and after Toyoda, the company’s founder’s grandson, announced plans to transition from CEO to chairman after more than 13 years leading the automaker. the cars.
Toyoda, who stepped down as CEO on April 1 and was succeeded by Koji Sato, has faced criticism from some environmental groups and investors for not getting involved in electric vehicles and continuing production of hybrid and plug-in hybrids like the Prius. and Prius Prime.
Toyota shares in 2023.
As investments in electric vehicles increase, Toyota executives have argued that such cars and trucks are one solution, not the answer, to meeting tough global emissions standards and achieving carbon neutrality.
To address skeptics about its strategy, this week the automaker in Japan offered a rare peek behind the curtain at its future plans.
“Management has rarely announced details of technology under development in the past, and we felt an obligation to ensure competitive strength through electrification and reflection under the new management team,” JPMorgan analyst Akira Kishimoto said in a note to investors this week.
Ahead of its annual meeting on Wednesday, Toyota outlined plans for a new generation of electric vehicles for rival industry leaders Tesla and BYD based in China. The company said it plans to launch its next-generation electric cars starting in 2026, including cars with “solid-state batteries” by 2027 or 2028.
Solid-state batteries can be lighter, have a greater energy density and provide more range at a lower cost than today’s EVs that run on lithium-ion batteries.
Takeru Kato, president of the Toyota Factory for Battery Electric Vehicles, said Toyota is targeting a driving range of 1,000 kilometers, or 620 miles, for its electric cars. He explained that the facility aims to produce about 1.7 million cars by 2030.
“The strategic focus on differentiation (in terms of technologies and business model) rather than scope in 2025-30 and the company’s strong ability to develop technologies to that end are long-term positives, in our view,” UBS analyst Kohei Takahashi said Tuesday. In an investor note.
After the announcements, Toyota shareholders on Wednesday approved the company’s new leadership and rejected a shareholder motion asking Toyota to review its climate-related lobbying activities — voting in line with the company’s recommendations.
CNBC channel Michael Blum And Lim Hwi J Contribute to this report.