Why Cathie Wood's ARK Remains Unimpressed By Toyota's EV Strategy - Toyota Motor (NYSE:TM)

Ark Investment Management, led by Cathie Wood, expressed skepticism on Tuesday regarding Toyota Motor Corp‘s TM new electric vehicle strategy.

What Happened: In a newsletter, analyst Sam Korus stated that Toyota’s EV strategy does not appear poised for mass market success.

One key aspect of Toyota’s strategy is the use of solid-state batteries to power EVs, aiming for a range of about 620 miles by 2027. However, the analyst noted that Toyota had initially projected solid-state batteries in EVs by 2022, making this announcement a five-year delay from the original forecast.

“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?” the analyst wrote.

Additionally, the analyst pointed out that solid-state batteries, being more expensive in small-scale applications, may find better use in higher-cost components such as drones, aviation, and wearables like augmented reality headsets.

Why It Matters: Toyota last week said that it plans to introduce a complete lineup of next-generation battery electric vehicles in 2026. The company aims to produce 1.7 million units out of a total of 3.5 million by 2030 through its BEV Factory.

Furthermore, Toyota intends to revolutionize its production process by introducing a self-propelling assembly line, eliminating the traditional conveyor belt system.

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