Toyota shares soar as gas-hybrid bet pays off
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Toyota expects to notch an annual profit of more than $30 billion when its fiscal year closes in March, it said Tuesday.
Why it matters: That would be a record profit for the Japanese car giant, suggesting its decision to emphasize gas-hybrid vehicles, rather than fully electric models, is paying off.
Context: Consumers seem reluctant to go fully electric, a reflection of anxieties about range, access to charging stations and affordability.
- Toyota has approached the all-electric vehicle market cautiously while maintaining its traditional strength in hybrid vehicles.
The bottom line: At the moment, the stock market thinks Toyota has the product mix right. The company's shares are up nearly 50% over the last 12 months, while electric vehicle giant Tesla has struggled (perhaps in part due to a new chapter in the never-ending saga of Musk).
