Two elements of recent changes in Toyota stock: expectations for EV strategy and general shareholders' meetings
Looking back on Toyota Motor Corporation stock over the past week, it can definitely be said that it was the biggest “rising market” in the past 3 years, but what became the driving force was that the company actively disclosed its electric vehicle (EV) strategy. Also, personnel changes at the general shareholders' meeting held on the 14th are also one of the causes of the changes.
Toyota's stock price has risen 13% this week, boosting the total market value by 4.4 trillion yen. Toyota explained in detail its plans to follow the global EV shift trend.
However, at the general shareholders' meeting, Chairman Akio Toyoda's plan to reappoint directors was 85%, down from 96% last year, to a record low at least since 2013.
While selling gasoline cars and hybrid cars, Mr. Toyota took the approach of developing EVs, hydrogen, and alternative fuels to provide customers with various options, but with this, it is impossible to obtain advantages in competition with other companies.
Major US pension funds and European investors expressed opposition to Mr. Toyota's election.
Then, Mr. Toyota handed over the presidency to Mr. Koji Sato in April.
The biggest challenge for Toyota today is moving to EVs. It was said that the transition would take longer than expected, and it sounded an alarm that there was a risk of resource shortages.
After Mr. Sato took officeHow Toyota's EV Strategy Will ChangeIt's getting a lot of attention.
In April, Mr. Sato declared that 10 fully electric vehicles will be developed by '26, and that 1.5 million EVs will be sold per year. The company said it would sell 3.5 million EVs by '30, cut carbon dioxide emissions in half by '35, and achieve decarbonization by 2050.
Since Toyota loudly showed guidelines for the EV transition, the next focus shifted to its ability to execute.
Therefore, on the 16th, the Ministry of Economy, Trade, and Industry decided on a total of 7 cases and a maximum of 127.6 billion yen for storage batteries designated as specific important goods based on the Economic Security Promotion Law, starting with subsidies of up to 117.8 billion yen for in-vehicle batteries such as Toyota Motor Corporation.
Toyota stated that it will also utilize the subsidy to increase the annual production capacity of domestic automotive batteries by about 25 gigawatt-hours.
1) What do you think about Toyota's current EV strategy?
2) Do you think Toyota will change drastically after the helmsman changes?
Personally, I think the current EV strategy is shrewd, but ideals and reality are different. How to overcome difficulties is something we should pay attention to from now on. Toyota has welcomed a new helmsman, which has been beaten as hereditary, and this is the biggest change for Toyota today, and it is also a turning point. If grants can still be fully utilized, Toyota may really reign supreme at the top of the industry. (lol)
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Deep Value JP :
孤高の芋ハイテク : If it is within the “automobile industry” framework, it is good for Toyota to return to the top, and I anticipate that it will be possible after 2038 to 2050.
Hydrogen vehicle development was temporarily stopped, and the story would change again if they focused on EVs, but the steering wheel was too slow.
As an element of anxiety, Japan must prioritize its budget for defense in China and elsewhere, so there is a possibility that subsidies from now on will not be able to be used generously.
Factors on the Tesla side will inevitably be so when considering the overwhelming difference in activity and progress rate between Tesla and Tesla led by Elon and the current state of Toyota, which is related to Tesla and the current state of Toyota.
There was a decisive difference in the recent integration of GM Ford and others, and Tesla has already gone to the next stage.
Also, when operations in many other industries are successful in the future, Tesla can expect a significant increase in earnings.
In that case, the possibility that Toyota will surpass in terms of market capitalization is unfortunately equal to nothing.
ルーキーの自己中OP 孤高の芋ハイテク: Thank you so much for your comments I wasn't considering the anxiety factor. Thank you