Toyota Motor (NYSE:TM) captured a lot of attention last week by announcing plans to launch commercial solid-state batteries as soon as 2027 and unveiling some manufacturing innovations. Notably, Toyota (TM) execs also disclosed the company is targeting battery-powered vehicles with range of about 620 miles arriving in 2026. The Japanese carmaker set a sales target of 1.5M all-electric vehicles per year by 2026 and 3.5M all-electric vehicles annually by 2030.
Despite the forward motion with all-electric vehicles, the new commitment from Toyota (TM) did not impress ARK Research.
ARK analyst Sam Korus said Toyota’s (TM) appointment of Koji Sato to CEO in April looked like a promising step to accelerate the all-electric process, but still sees some holes with the overall strategy as presented.
“Toyota still seems dedicated to solid-state batteries that will deliver 1,000 km, or ~620 miles of range by 2027, five years later than its original forecast six years ago. What, we wonder, will be the cost of solid-state batteries compared to the low-cost battery chemistries to which the industry will have shifted in 2027?”
ARK Research expects solid-state batteries will enable new capabilities and gain traction in devices with higher cost components such as drones, aviation, and wearables like augmented reality, but maintains the overarching Toyota (TM) EV strategy does not seem destined for mass market success.
Seeking Alpha analyst Doron Levin was more positive on the electric vehicle program progress by Toyota (TM) and thinks shares have room to run higher.
Toyota Motor (TM) cooled off Tuesday afternoon after a recent hot stretch. Shares were down 4.25% at 1:50 p.m. after hitting their 2023 high last Thursday.