2. Toyota Motor Corporation (NYSE:TM)
Short Interest as % of Shares Outstanding: 0.05%
Number of Hedge Fund Holders: 14
One of the best EV stocks, Toyota Motor Corporation (NYSE:TM) is navigating the shift toward electrification with a well-rounded approach that embraces both its legacy and the future of automotive technology. The company has introduced a new range of combustion engines that are designed to operate on both gasoline and alternative fuels. This helps the company maintain its expertise in internal combustion while preparing for a more sustainable future.
The company’s long-standing experience with hybrids continues to play a significant role in its product lineup. It has been a leader in hybrid technology for years, and this expertise remains valuable as it offers a bridge between traditional internal combustion engines and fully electric vehicles. The growth of its hybrid business reflects a steady demand for vehicles that provide the benefits of electric driving while retaining the convenience of conventional fuel.
Toyota (NYSE:TM) is also advancing its EV strategy with the launch of its bZ (Beyond Zero) series. The bZ4X, the first model from this series, is a compact SUV that combines practicality with advanced technology and a spacious interior.
Toyota (NYSE:TM) was part of 14 hedge funds’ portfolios in the second quarter with a total stake value of $1.42 billion. Fisher Asset Management is the biggest shareholder in the company and has a position worth $1.35 billion as of Q2.
The bZ4X model represents the company’s initial push into the expanding EV market, and it is just the beginning of a broader plan. The company has committed to introducing 30 electric models by 2030 and aims to achieve annual sales of 3.5 million electric vehicles. To support this ambitious goal, it is investing $70 billion in electrification.
Beyond battery electric vehicles, the company is also focusing on hybrid technology and hydrogen fuel cell vehicles. The company’s hybrid models, which combine battery power with gasoline engines, are particularly important in regions where charging infrastructure is still developing. Its hydrogen fuel cell vehicle, the Mirai, is evidence of its dedication to exploring alternative energy solutions.
In a recent development, the company and BMW are expanding their collaboration, with Toyota (NYSE:TM) supplying key components like hydrogen tanks and fuel cell systems. This partnership will help advance BMW’s efforts in integrating these components into their electric vehicle technology, showcasing Toyota’s (NYSE:TM) role in driving innovation across the industry.
The company’s hybrid strategy has also proven successful in the market. It plans to offer hybrid versions of all its models in the U.S., and this approach has already shown positive results. In the first half of the year, Toyota and Lexus experienced a nearly 15% increase in North American sales. Additionally, sales of the hybrid Camry surged by almost 143% year-over-year, outpacing the overall growth in Camry sales.
