12 Best EV Stocks to Buy for The Long Term

9) Toyota Motor Corporation (NYSE:TM)

Number of Hedge Fund Holders: 18

3-Year Sales Growth: 14.7%

Toyota Motor Corporation (NYSE:TM) is engaged in designing, manufacturing, assembling, and selling passenger vehicles, minivans and commercial vehicles, and related parts and accessories. Macquarie analysts upgraded the company’s stock to “Outperform” from “Neutral” due to production recovery, favorable FX trends, and robust hybrid electric vehicle (HEV) sales. The analysts project better earnings visibility over the upcoming quarters for Toyota Motor Corporation (NYSE:TM) because of North American production recovery and lower levels of channel inventory, placing the company well.

The company has announced that it will sign a comprehensive partnership agreement with the Shanghai municipal government in China regarding carbon neutrality. Apart from this, Toyota Motor Corporation (NYSE:TM) decided to establish a new wholly-owned company in Jinshan District in southwest Shanghai to produce BEVs and batteries. Under the partnership with the Shanghai municipal government, the company plans to contribute to the Chinese government’s goal of achieving carbon neutrality by 2060 in areas including hydrogen energy, automated driving technology, and battery recycling and reuse.

To drive this, Toyota Motor Corporation (NYSE:TM) plans to establish a new company. The newly formed company is expected to develop a new BEV under the Lexus brand and the production has been scheduled to begin from 2027 onwards. The initial production capacity is expected to be ~100,000 units per year. Overall, with the acceleration of EV demand, Toyota Motor Corporation (NYSE:TM) is expected to benefit from hybrid sales, solid-state battery innovation, expansion in BEV offerings, and government incentives.