Toyota Motor’s (NYSE:TM) incoming CEO, Koji Sato, is aiming to speed up the company’s adoption of electric vehicles (EV). Sato plans to achieve this with the help of new EV-optimized parts and manufacturing methods.
The company expects to develop its all-new EV in the luxury segment, Lexus, by 2026. Furthermore, Toyota is investing about $31 billion to launch 30 EV models by 2030. Apart from the EV vehicles, the company targets to offer consumers diverse options, including gasoline engines, hybrids, and hydrogen-powered cars.
Also, a shake-up in Toyota’s senior management has been announced ahead of Sato taking over the reins of the company. Hiroki Nakajima will become the new Chief Technology Officer, and Yoichi Miyazaki will be taking over as Chief Financial Officer from April 1.
Is TM a Buy?
The company’s strategic approach to gaining market share in the EV segment seems encouraging. Also, despite facing supply chain issues and production constraints due to COVID-19, Toyota was able to maintain its 2022 total sales in line with last year. This demonstrates its power over consumers and its capacity to increase sales.
Wall Street analysts are cautiously optimistic about TM stock and have a Moderate Buy consensus rating, which is based on one Buy and one Hold. The average stock price target of $161.99 implies 13% upside potential.
