Toyota to Launch First U.S.-Made Electric SUV Later This Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy TM?
Source: seekingalpha
- Market Expansion: Toyota plans to launch its first U.S.-made electric vehicle, the 2027 all-electric Highlander SUV, later this year, marking a strategic deepening of its footprint in the North American market.
- Investment and Production: The vehicle will be assembled at Toyota's Georgetown, Kentucky plant, which is undergoing a $1.3 billion retooling to enhance battery-electric SUV production and in-house battery pack assembly capabilities.
- Battery Supply Chain: Battery modules will be supplied from Toyota Battery Manufacturing in North Carolina, a facility that has just begun producing lithium-ion packs for Toyota's electrified lineup, ensuring a reliable battery supply for the new EV.
- Range Capability: Positioned as a large family SUV, the Highlander EV is expected to deliver a driving range of approximately 320 miles (about 515 kilometers) on a single charge, aligning it with other long-range electric SUVs and enhancing its competitive edge in the market.
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Analyst Views on TM
About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Safety and Convenience: Equipped with Toyota Safety Sense 4.0 and various safety technologies, it ensures driving safety while providing features like a power liftgate and smart key for added convenience, enhancing user comfort during driving.
- Production and Market Outlook: The Highlander will be produced at Toyota's Kentucky plant, with sales expected to begin from late 2026 to early 2027, marking a significant step in Toyota's electrification transition, with plans to launch 22 electrified models.
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- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
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- China-Canada Cooperation: In exchange for tariff reductions, China has agreed to lower tariffs on Canadian canola oil, a move that not only enhances Canadian agricultural exports but may also foster joint investments and collaborations in the EV sector, driving manufacturing revival.
- Market Outlook: With expectations for significant growth in the Canadian EV market by 2030, the relatively small import volume of 49,000 vehicles could have a substantial impact if these are primarily affordable models, potentially increasing consumer acceptance of electric vehicles.
- Manufacturing Challenges: Despite having resource advantages, Canada faces challenges in attracting manufacturing investments compared to Mexico and the U.S., where lower manufacturing costs and larger markets prevail, and without further action, Canadian assembly plants may continue to decline.
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- Reliance on Informal Networks: Russian dealers are increasingly depending on informal networks to acquire vehicles, with many brand-new cars classified as 'used' to bypass manufacturer controls, indicating a strong demand for high-end vehicles in the market.
- Chinese Automotive Market Advantage: China's heavily subsidized automotive sector enables traders to profitably export surplus vehicles, leading to a growing web of intermediaries connecting Chinese factories with Russian buyers, thus creating a new trade dynamic.
- Active Gray Market: Cars sold at discounts in China often fetch near-new prices in Russia, further incentivizing the expansion of intermediary networks and highlighting the persistent demand for high-end and hybrid vehicles in the Russian market.
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