Why This EV Stock Could Be An Exceptional Long-Term Buy
Transitions don't always mean great things for a company's stock as a new CEO's start can sow doubt among investors. But the appointment of Lexus boss Koji Sato as Toyota Motor (NYSE: TM) CEO promises to reverse the negativity surrounding the stock under current CEO Akio Toyoda. We have already stated why the change will be good for Toyota, but new developments have only reaffirmed what we've said earlier.
Toyota's pioneering role in successfully marketing gas-electric hybrids has led it to favor that powertrain even as demand for pure battery electric vehicles (EVs) continues to grow. But Toyota has a market to protect. Half of all hybrid vehicles sold in the United States in 2022 wore either the Toyota or Lexus brand.
But reports have surfaced suggesting that's in the past. While Sato isn't scheduled to assume the role of chairman until April 1, his touch is already being felt. The Nikkei wire service reports that Toyota is planning to produce EVs at its Georgetown, Kentucky plant as soon as 2025, with half-year volumes expected to reach 10,000 units. More optimistically, the company expects to sell 1 million electric vehicles in 2026.
Source Fool.com
