This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Toyota's Future Is Hybrid and Hydrogen, Not Electric

NEW YORK (TheStreet) -- The world's leading automaker, Toyota Motors (TM - Get Report) has completely given up on electric cars. Instead, the company is focusing on hybrid and hydrogen-based vehicles.

It's a big change.

About two weeks ago,Toyota decided that it will end its relationship with Tesla (TSLA) after its agreement with the electric car maker expires this year.

Toyota entered into a $100 million agreement with Tesla under which the latter supplied electric powertrains for a version of Toyota's RAV-4 sports utility vehicle. The electric SUV, however, turned out to be a flop, which prompted Toyota to end its relationship with Tesla.

Moreover, Toyota has also said that it believes that the future of long-distance travel lies in hybrids, plug-in hybrids and fuel-cell powered cars. The electric vehicles are only good for short-range travel.

For hybrids, Toyota is working on improving fuel efficiency and expanding its portfolio by the end of the decade.

Meanwhile, the company is laying the groundwork for the highly anticipated launch of its hydrogen-powered vehicle in 2015.

Toyota's American depositary receipts have dropped by 5.9% for the year to date, and were trading in the high $114 range as of noon Tuesday.

Toyota is the biggest player in the hybrid vehicle market. The company's iconic Prius hybrid vehicle has been the top-selling vehicle in California, the largest vehicle market in the U.S., for two years in a row, ahead of Honda's (HMC) Civic and Tesla's Model S.

Moreover, Toyota has announced that it has developed a computer chip for hybrid vehicles which will improve fuel efficiency by 10%.

Moreover, the new system, which is significantly smaller and weighs four times less than the conventional system, can also be installed in a larger number of vehicles. This will enable to company to significantly grow its portfolio of hybrid vehicles, which currently includes 24 hybrid passenger car models and one plug-in hybrid model.

The company says that it can start installing the new systems in its vehicles by 2020.

So is Toyota a buy?

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TM $133.46 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs