“We Love the PHEV Powertrain”: Toyota Motor (NYSE:TM) Plans Electric Vehicle Surge

We know that most car companies have had a rough go of getting electric vehicles up and running these days, as they discover the market just does not have much interest in them for any of several good reasons. But car companies, like Toyota Motor (TM), are not giving up on the idea. In fact, Toyota is planning to ramp up its plug-in line over the next few months with several new models. Investors were less than pleased, though, as shares slipped nearly 2% in Wednesday afternoon’s trading.

Toyota brand’s North American head, David Christ, noted that the company’s planned releases of plug-in hybrid electric vehicles (PHEV) is looking to grow, and grow substantially. Plug-in hybrid vehicles are often seen as an intermediary step between internal combustion and electric vehicles, as hybrids basically work like both at once. And Toyota is out to make the PHEV a lot more like a straight EV than ever.

Christ expanded on the concept, noting “We’re working to increase, perpetually increase, the amount of miles you can drive on EV-only range.” And while PHEVs were not a big part of Toyota’s sales lately—just 2.4% of United States sales volume in 2024—they are expected to be huge by 2030, when they go to around 20% of sales. But that number does have some wiggle room, depending on key points like regulatory issues and overall vehicle affordability.

Moving the RAV4

In aid of that, Toyota is also pivoting its popular RAV4 SUV to its PHEV lineup. In 2026, the RAV4 will only be available as a hybrid, or a plug-in hybrid. Toyota has some battery infrastructure already being worked on in the United States, including a recent move to lease out part of a battery plant Ford (F) has.

And with mounting infrastructure in North Carolina as well, Toyota has been pushing hard on electric vehicle development, with or without an accompanying gas engine. While it is worth wondering if the market will be there to support all this development, the idea of ramping up production to the point where prices would all but have to plunge due to massive oversupply is one way to engage in marketing.

Is Toyota Motor a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on TM stock based on one Hold assigned in the past three months by Bernstein analyst Masahiro Akita, as indicated by the graphic below. After an 12.75% loss in its share price over the past year, none of the remaining analysts have price targets available, thus leaving no downside risk or upside potential available.

See more TM analyst ratings

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