5. Toyota Motor Corporation (NYSE:TM)
Average Analyst Price Target Upside as of September 11: 40.96%
Number of Hedge Fund Holders: 14
Toyota Motor Corporation (NYSE:TM) has been making substantial progress in expanding its EV lineup, aiming to become a major player in the EV market. The company has significantly increased its production target for electric vehicles and plans to manufacture just over 400,000 EVs by 2025, up from the initial goal of 190,000 for 2024.
According to Nikkei, the company projects a global output of 1 million EVs by 2026, which shows its strong commitment to electrification. The ambitious plan includes a major shift in the company’s approach to electrification. The automaker has set a goal to offer an electrified version of every Toyota and Lexus model worldwide by 2025.
The stock has a consensus Buy rating among 20 analysts, and its average price target of $246.24 has an upside of 40.96% from current levels, as of September 11. It ranks 5th on our list of the best EV stocks to buy for the long term.
Currently, Toyota’s (NYSE:TM) sole fully electric model available in the U.S. is the bZ4X SUV. However, the company is preparing to expand its EV offerings with several exciting new models. In 2023, it introduced the next-generation BEV concept cars, including the LF-ZC and LF-ZL, under its luxury Lexus brand.
Scheduled for release in 2026, these models represent the company’s push into the high-end EV market. Additionally, it plans to launch an electric version of the Hilux pickup in Thailand and an electric Lexus ES sedan in Japan by 2025, which broadens its EV portfolio across various regions and vehicle types.
Supporting this expansion is the company’s decision to allocate more than half of its research and development resources to electrification and advanced battery technologies. It has outlined plans to enhance its EV manufacturing processes by employing new modular designs and innovative production technologies aimed at reducing costs and improving efficiency.
To accommodate its growing EV production, the company is making significant investments in its manufacturing infrastructure. Production for new EV models will take place at two of its main plants in Japan and a Lexus factory in Kyushu. Additionally, the company plans to introduce its first U.S.-assembled battery electric vehicle, a three-row SUV, with production set to start in Kentucky in 2025.
Toyota (NYSE:TM) plans on investing over $70 billion into its electrification efforts by 2030, which is a testament to its commitment to becoming a leading force in the electric vehicle market. With a comprehensive approach that includes expanding its model lineup, advancing battery technology, and enhancing manufacturing capabilities, the company is well-positioned to achieve its ambitious goals and strengthen its competitive edge.
In Q2, 14 hedge funds had investments in Toyota (NYSE:TM), with positions worth $1.42 billion. Fisher Asset Management is the most prominent shareholder in the company as of Q2 and has a position worth $1.35 billion.
