Toyota Motor's Shares Reach Record High
Toyota Motor's shares reach record high after positive fiscal-year earnings forecast, investment in facilities, and strategic partnerships.
Toyota Motor's shares have experienced a significant rise, reaching a record high following the automaker's positive fiscal-year earnings forecast. The shares are currently 4.9% higher at 3,289 yen, having reached a record intraday high of Y3,364 earlier on Wednesday.
Toyota announced on Tuesday that it expects its net profit to soar by 84% to 4.500 trillion yen ($30.42 billion) for the fiscal year ending in March. This optimistic outlook is driven by the strong sales growth of hybrid vehicles. Previously, Toyota had forecasted a 61% increase in its net profit for the fiscal year.
Toyota has been implementing a multipathway approach, providing consumers with a diverse range of vehicle options. This approach includes hybrid-electric and hydrogen-powered cars, along with electric vehicles.
In another development, Toyota revealed its plan to invest an additional $1.3 billion in its flagship Kentucky facility to support the assembly of a new three-row battery-electric sports utility vehicle specifically for the American market.
Furthermore, Toyota announced that it will be acquiring a minority stake in Taiwan Semiconductor Manufacturing Co.'s manufacturing unit in Japan. This strategic move will allow Toyota to secure advanced chips, addressing the semiconductor shortage that has impacted car production globally during the Covid-19 pandemic.
Toyota's positive earnings forecast, investment in facilities, and strategic partnerships reflect the company's commitment to innovation and growth in the ever-changing automotive industry.