Toyota stock jumps nearly 15% on EV plans, has best week since 2009.

Toyota Motor Corp (NYSE: TM) is having its best week since 2009 due to the company’s announcement of plans to produce new batteries for its electric vehicles. The stock also rose due to shareholder satisfaction with the CEO and chairman positions.

On Thursday, Toyota’s stock reached $169.07 but closed at $168.18. Toyota’s stock has increased by almost 15% over the past 5 days, 18% over the past month, and 23.14% year-to-date (YTD) and 23.75% in the past 3 months, according to data from MarketWatch. This week is Toyota’s best week since 2009, when it rose by 14.5%.

Toyota Stock Reacts to News on Electric Vehicles and New Leadership

Toyota’s stock also rose 5% on the Tokyo Stock Exchange on Tuesday after the announcement of electric vehicles and next-generation batteries. The company plans to launch electric vehicles in 2026, with batteries that will compete with automakers like Tesla Inc (NASDAQ: TSLA). Toyota also said that it would manufacture the vehicles under BEV Factory, a new EV division.

BEV Factory president Takero Kato said in a recent presentation that the company would produce 1.7 million electric vehicles by 2030.

Toyota also plans to produce vehicles with solid-state batteries by 2027. The company has reportedly discovered a new way to develop more durable batteries. Toyota is now reviewing battery development for its previous hybrid electric vehicles (HEV) and the standard electric vehicles.

Although solid-state batteries are expensive, they promise increased efficiency as they charge faster and produce more energy. They are also unlikely to cause fires. Using these batteries for its EVs may raise prices considerably, making the cars more expensive than the competition. However, users may enjoy better utility as a full charge could be completed in under 10 minutes, according to Toyota. Kato has already noted that Toyota plans a driving range of 1,000 kilometers (621 miles) for the upcoming EVs.

Shareholders voted to keep former Toyota CEO Akio Toyoda – grandson of Toyota Industries Co. founder Sakichi Toyoda – as chairman of the board. Shareholders also accepted Koji Sato’s position as CEO.

Toyota’s YTD jump of 23% is greater than gains from auto giants Volkswagen and General Motors, with 15% and 13%, respectively. However, Toyota’s stock has fallen behind other automakers like Ford Motor and Honda, each up 25% and 40%, respectively. Tesla’s stock is the largest auto gainer at 108% in 2023.

Toyota’s Electric Vehicles

The auto giant has received criticism for its reluctance to compete with other EV makers. Toyota’s pioneer hybrid Prius model was launched in 1997 when there was little to no competition in that regard. Previously, Toyota said it was not ready to enter the world of EVs, even adding that the public was not prepared for the technology. However, Toyota is now fully invested in battery research. The company announced it would invest $35 billion into electric vehicles and have 30 models ready by 2030.