Toyota Stock Surges on Upbeat Earnings, EV Expansion Plans
New York, NY - Toyota Motor Corporation's (TM) stock is experiencing a surge following the release of its positive third-quarter fiscal results and announcements of a new wholly-owned EV unit in China.
Solid Fiscal Q3 Performance
* Revenue increased 2.9% to 12.39 trillion yen ($80.95 billion)
* Net profit jumped 62% to 2.19 trillion yen ($14.21 billion)
* Exceeded Bloomberg estimates of 1.17 trillion yen
Updated Fiscal 2025 Guidance
* Full-year profit revised upwards to 4.7 trillion yen ($31 billion)
* Previous outlook was 4.3 trillion yen
* Street consensus was 4.8 trillion yen according to Bloomberg
EV Expansion in China
* Establishment of a fully owned company for Lexus EV and battery development in Shanghai
* Production expected to begin in 2027 with an annual capacity of 100,000 EVs
* China's EV market growth reached 40% in 2024
US Battery Production
* Toyota Battery Manufacturing North Carolina (TBMNC) plant opens in North Carolina
* The first in-house battery factory outside Japan
* To produce batteries for hybrid and fully electric vehicles sold in the US
* Projected to employ 5,000 workers and commence battery shipments in April
Analysts' Perspective
Toyota's localization efforts for EV production in China and the US aim to mitigate trade restrictions and lower production costs. However, the impact of potential tax credit changes on EV demand in the US remains a question mark.