Feb 7, 2024 - Economy

Toyota shares soar as gas-hybrid bet pays off

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

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.

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).

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