Toyota's EV Expansion and Upbeat Guidance Boost Stock Performance
Toyota (TM) shares surge following strong financial performance and ambitious EV plans in China.
Key Financial Highlights:
* Fiscal Q3 revenue up 2.9% to ¥12.391 trillion ($80.95 billion)
* Net profit jumps 62% to ¥2.193 trillion ($14.21 billion), exceeding estimates
* FY2025 profit forecast revised upward to ¥4.7 trillion ($31 billion)
EV Strategy in China:
* Establishing wholly-owned EV unit for Lexus and battery production
* Annual production capacity of 100,000 EVs targeted by 2027
* Localization to cater to Chinese customer needs
US Battery Plant Expansion:
* $14 billion Toyota Battery Manufacturing North Carolina (TBMNC) commences operations
* First in-house battery factory outside Japan
* Battery production for hybrid and electric vehicles sold in the US
Market Outlook and Analyst Commentary:
Toyota's localization strategy aims to mitigate trade restrictions and reduce production costs.
"Local Chinese members will lead the development of BEVs tailored to Chinese customers," stated CFO Yoichi Miyazaki.
China remains the largest EV market globally, with significant growth potential.
Toyota's US battery plant expansion highlights its commitment to the US market.
Demand for EVs remains strong in the US, supported by incentives such as tax credits.
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