Competitors to Tesla: 7 EV stocks to purchase
- Inc. Rivian Automotive (RIVN)
- Inc. Lucid Group (LCID)
- Inc. XPeng (XPEV)
- The Li Auto Inc. (LI)
- Inc. Proterra (PTRA)
- Ford Motor Company (F)
- A general motors company (GM)
In This Article...
Does Toyota compete with Tesla?
Toyota has a commanding advantage in EV patents, yet Tesla outsells it in terms of sales. TOKYO While Japanese automakers trail Tesla and Volkswagen in terms of sales of electric vehicles, they have an edge in key EV technologies, with Toyota Motor coming out on top globally in terms of the significance of its U.S. patents, according to new data.
Toyota: Can it beat Tesla?
Toyota Vs. Tesla Comparison In 2019, Toyota’s car sales were roughly $253 billion, whereas Tesla’s were just about $21 billion. Tesla’s gross margins were 21% in 2019 compared to 25% in 2016, but they are still greater than Toyota’s margins of 17%.
Can other automakers contend with Tesla?
Key Learnings. Ford and Honda are just two of the conventional automakers that Tesla has to contend with. Tesla has been successful by concentrating on high-end electric vehicles (EVs). However, additional rivals are now entering the market for luxury electric and self-driving cars.
- Heat pump system that provides both heating and cooling
- Available heated seats and steering wheels
- Radiant foot and leg warming available for front seats (first for Toyota)
AWD with X-MODE, an optional distinguishing feature for bZ4X AWD models and a Toyota first, when combined with the exceptional driving performance of the bZ4X, creates an exhilarating yet comfortable driving experience appropriate for daily driving and off-pavement adventure. The new AWD system with X-MODE can be employed in two modes (Snow/Dirt and Snow/Mud) in conjunction with Multi-terrain Select to handle slick or uneven situations.
To increase vehicle stability and improve traction on slick, dirt surfaces, use Snow/Dirt Mode with X-MODE. Engaging Snow/Mud Mode applies the brakes to spinning wheels to create a limited-slip differential (LSD) effect for more grip on unpaved and uneven roads. By automatically setting the tires to slip in a way that clears away snow or mud, this mode also deals with softer road surfaces that are heavily snow-covered. It increases vehicle stability. Additionally, Downhill Assist Control aids in maintaining a consistent speed in downhill circumstances where the driver must apply severe brakes, allowing them to focus on driving.
Grip-Control, a low-speed technology that makes use of motor drive power modulation to enable capable off-road performance during turns, is another noteworthy aspect of the AWD system. This feature was created as an additional X-MODE function to assess the features of the road surface, maintain a steady pace to avoid skidding on bumpy roads, and free up the driver’s attention for steering.
There are many ways to power the bZ4X, including 120V and 240V chargers as well as DC fast-chargers. A J1772/CCS1 (Combined Charging System (CCS)) connector, which enables both home and public charging, is included in every bZ4X model. The 6.6 kW onboard charger enables the bZ4X to charge from empty to full with a Level 2 charger at home or at a public charger in around 9 hours (at optimal outside temperatures).
Is Toyota a worthwhile investment for 2021?
Toyota Motor is a buy for a number of reasons. The draw in this case is the brand name, which enjoys a devoted fan base, which naturally creates a strong demand for any future EV offering with the Toyota or Lexus badge. Even if the corporation hasn’t been a pioneer in battery-powered EVs, given its extensive global infrastructure and manufacturing know-how, its plan to build up in that direction seems plausible. According to this metric, the company continues to have a positive growth outlook and is in a good position to increase its market share globally.
With a price estimate of $235.00 for the next year, which corresponds to a 1-year forward P/E of 10x the current consensus fiscal 2023 EPS, we rank shares of TM as a buy. The chart below shows that since the peak of the pandemic crash in 2020, shares of TM have been closely following a trendline. This pattern should continue, in our opinion, and the most recent decline from the early-January high of $212 signals a fresh window for purchasing.
We are adopting a more upbeat stance in the midst of all the stories about macro concerns, heightened inflation pressures on consumer discretionary spending, and rising interest rates. Nevertheless, there are dangers to think about. The positive case for the stock might be undermined by a worsening of the forecast for global growth while keeping a watch on events in Eastern Europe related to the conflict between Russia and Ukraine. A review of the long-term profits prospects would allow for a leg lower in the stock if the results were less than anticipated and below management guidance. Over the coming quarters, keep an eye on things like production and sales levels, the operating margin, and any changes to the BEV plan.
Is Toyota a wise investment in stock?
If you want to know whether the new stock buyback program is beneficial for investors, I believe there are three important factors to take into account.
First and foremost, Toyota Motor’s current price levels and valuations are crucial since it would be foolish for the business to repurchase its own shares if they were not “undervalued.”
Only 15 percent lower than its all-time historical high stock price of $213.74 registered during intra-day trading on January 13, 2022, TM’s last traded share price of $180.62 as of March 30, 2022.
Separately, according to S&P Capital IQ data, the market values Toyota Motor at consensus forward P/E multiples for the fiscal years 2023 and 2024 of 10.3 times and 9.4 times, respectively. This seems to be in line with TM’s planned ROEs of the low-teens percentage range over the same time and its expected FY 2022-2025 earnings per share CAGR of +9.4 percent.
To put it another way, Toyota Motor appears to be decently valued at best, therefore the stock repurchase may not be the ideal approach to distribute extra cash to shareholders.
Second, rather than repurchasing shares, it could be preferable for Toyota Motor to increase its regular dividend or give out a special payout.
According to financial projections obtained from S&P Capital IQ, TM has consensus forward dividend yields for the fiscal years 2023 and 2024 of 2.8 percent and 3.1 percent, respectively. These are respectable figures, but Toyota Motor would be even more appealing to yield-focused investors with a significantly higher mid-single digit dividend yield. For comparison, TM’s dividend payment ratio for the fiscal year 2021 was 29.8 percent, which is acceptable but might be increased to 50 percent or even higher.
Toyota Motor may have thought about paying a non-recurring special dividend to lower its equity base and increase future ROEs if it is concerned about the sustainability of future regular dividend payouts. Repurchasing its own shares, on the other hand, at a time when TM isn’t exactly undervalued, might not be the greatest course of action.
According to Reuters, Toyota Motor “may pursue mergers or acquisitions to buy new automotive technologies” in the middle of 2017. A year ago, TM purchased