This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Toyota's Future Is Hybrid and Hydrogen, Not Electric

Stocks in this article: TM TSLA HMC

A possibility in expanding the hybrids portfolio is good news, since Toyota is getting better at selling hybrid cars. Earlier in January, the company revealed that it sold a million hybrid vehicles in under nine months, a record. So far, the company has sold more than 6 million hybrids, more than any other automaker.

Over the next couple of years, the company has said that it will launch 15 new hybrid cars. This should continue to fuel Toyota's growth in this niche in the coming years.

Besides hybrid, Toyota is also focusing on hydrogen-powered vehicles. So far, unlike electric vehicles, the hydrogen-powered cars have not taken off in the U.S., largely due to the lack of infrastructure. This may, however, change in the near future. And when it does, Toyota will be there to reap the rewards.

California is leading the way in developing the necessary infrastructure that will support the growth of hydrogen-powered vehicles. The state, which has already given legislative support by enacting strict fuel-emission laws, is building hydrogen fueling stations.

California currently has 10 hydrogen fueling stations, with 16 under development. It has earmarked $47 million for building an additional 28 stations. Moreover, Toyota has given $7.2 million to FirstElement Fuel to develop at least 19 hydrogen fueling stations. This should be enough to support more than 10,000 hydrogen cars.

According to Toyota's estimates, California will have more than 70 hydrogen fueling stations by 2018.

Last year, the Energy Department launched a public-private partnership, called H2USA, to promote the growth of hydrogen-powered vehicles.

Toyota has said that it plans to bring a hydrogen fuel-cell-powered sedan to California in 2015. The car will accelerate to 60 miles per hour in 10 seconds, travel up to 300 miles on a full tank and be refueled within five minutes.

Although hydrogen cars have been expensive, the costs have dropped by more than 90%. Toyota reportedly developed its hydrogen-powered Highlander for a sale price of $1 million; the new vehicle due next year is estimated to have a price tag of between $50,000 and $100,000.

At this price, Toyota's sedan could give Tesla's Model S, which sells for $70,000, a run for its money. Meanwhile, Toyota's rival Hyundai has already brought its hydrogen vehicles to the U.S., while Honda will launch its hydrogen sedan in 2015.

>>Read More: GM, Ford Sales Jump in May as Automakers Roll Past Estimates

>>Read More: Diane von Furstenburg Creates New Google Glass Designer Frames

>>Read More: Homebuilder Hovnanian, 4 Others That Are Reporting Face More Volatility

>>Read More: Apple WWDC: What Wall Street's Saying

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs