Toyota Share Price Forecast December 2021 – Time to Buy TM?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of leading automaker Toyota Motor (NYSE: TM) are in the green today after closing at $180.78 as of December 14th (22:51 EST). The automaker is currently trying to win back lost ground in the EV industry with a new production plant. Despite plans of spending nearly $14 billion to develop batteries and battery supply chains for electric vehicles (EVs) between now and 2030, it is still a long way behind rivals.
Toyota – Technical Analysis
Toyota’s financial statement indicates that the market cap of the company is at $248.975 billion with total assets worth $553.519 billion. Revenue for 2020 was at $256.60 billion with a profit margin of 8.25% compared to $274.70 billion in 2019.
Moving averages such as Exponential Moving Average (10)(181.25), Simple Moving Average (10) (181.84), Exponential Moving Average (20)(181.44), Simple Moving Average (20)(182.64) and Exponential Moving Average (30)(181.09) are indicating a sell action. Oscillators such as Relative Strength Index (14)(49.33), Stochastic %K (14, 3, 3)(33.38), Commodity Channel Index (20)(−44.29) and Average Directional Index (14)(10.64) are neutral.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
As an investment, Toyota has always been interesting among investors due to its sheer size, but it’s a slow-moving investment. The company announced that 7 Toyota brand electric vehicles are coming over the next three years or so, using a platform that they co-developed with Subaru, a company they own a stake in. Toyota has always got massive government support with a 50% market share in the company. They have got interlocking relationships with an entire supply chain which has helped it tackle the global hip crisis better than most of its rivals.
On December 6th, Toyota announced its intention to construct an electric vehicle (EV) battery factory in North Carolina. The company has been caught flat-footed by the explosion of EV popularity and is now playing catch-up. The new factory will have the capacity to make around 800,000 EV batteries annually, with future expansion to manufacture around 1.2 million batteries. While this move would’ve excited investors a couple of years ago, it seems it’s too late for Toyota to overtake its rivals.
Toyota has allocated $1.29 billion for its North Carolina project. The factory also referred to as e Greensboro-Randolph Megasite is called Toyota Battery Manufacturing, North Carolina (TBMNC). Toyota is also receiving incentives from the government, which range from tax breaks to cash, which will stack up to around $430 million. It has allocated a further $2.1 billion for EV and battery manufacturing capacity in the United States.
Should You Buy TM Shares?
Investors should look at Toyota’s present competitive position in the EV industry, as its vigorous entry into the market seems too late. The new factory isn’t expected to produce batteries till 2025. The company has future plans of unveiling the concept vehicle for its all-electric bZ4X sport-utility vehicle (SUV) in June. Its future lineup is expected to feature 15 dedicated BEVs in addition to 55 hybrid models before 2025.
Toyota is thus lagging behind by four years assuming there are no production delays which would further push back the expected date. Toyota pioneered the hybrid-electric category with the Prius model but has since lagged behind peers Ford and GM. All of this makes it very difficult for Toyota to be a good growth stock for years to come. Considering this now is not the right time to buy Toyota shares.
Buy TM Stock at eToro from just $50 Now!
