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Yes, but incoming regulation is going to make selling gasoline cars increasingly difficult. That includes Europe, especially. If Toyota is in the business of s

Yes, but incoming regulation is going to make selling gasoline cars increasingly difficult. That includes Europe, especially. If Toyota is in the business of selling cars, they're going to have problems when large swaths of the population are incentivized to buy electric cars, and Toyota has a limited selection. So, these pension funds are probably right to be worried that Toyota has dropped the ball on this.

clouddrover 4y ago
But Toyota hasn't dropped the ball as the sales figures demonstrate. Toyota probably has timed it right: https://www.theverge.com/2021/12/14/22833997/toyota-ev-investment-lexus-concept-vehicles https://www.theverge.com/2021/12/14/22833997/toyota-ev-inves...
- charles_kaw 4y ago
  Toyota's battery manufacturing capabilities are extremely behind the curve. There will likely be a few years where they are unable to make nearly enough to meet demand. That is why a lot of investors are unhappy.
toast0 4y ago
If the only reason selling gasoline cars is difficult is regulations, it makes sense to sell as many as you can before the regulations make it hard. And to try to make sure you didn't make too many that you can't legally sell in the intended market. Economically, it probably makes sense to try to push back on the regulations too. Seperate from that, you do want to be prepared to switch to what you can legally sell. But there's no reason to ramp up producing a less desirable good before the mandate comes into force. (Of course, you could argue about EVs being more or less desirable... but that's a different argument than saying you should switch before the mandate; I personally think the addressable market is clearly smaller with EVs vs gas powered too; also, I think hydrogen cars are clearly worse than natural gas cars, and natural gas cars didn't survive in the US market, so I don't think hydrogen cars are a good investment, but that's not really the claim either)

clouddrover 4y ago

But Toyota hasn't dropped the ball as the sales figures demonstrate. Toyota probably has timed it right: https://www.theverge.com/2021/12/14/22833997/toyota-ev-investment-lexus-concept-vehicles https://www.theverge.com/2021/12/14/22833997/toyota-ev-inves...

charles_kaw 4y ago
Toyota's battery manufacturing capabilities are extremely behind the curve. There will likely be a few years where they are unable to make nearly enough to meet demand. That is why a lot of investors are unhappy.

toast0 4y ago

If the only reason selling gasoline cars is difficult is regulations, it makes sense to sell as many as you can before the regulations make it hard. And to try to make sure you didn't make too many that you can't legally sell in the intended market. Economically, it probably makes sense to try to push back on the regulations too. Seperate from that, you do want to be prepared to switch to what you can legally sell. But there's no reason to ramp up producing a less desirable good before the mandate comes into force. (Of course, you could argue about EVs being more or less desirable... but that's a different argument than saying you should switch before the mandate; I personally think the addressable market is clearly smaller with EVs vs gas powered too; also, I think hydrogen cars are clearly worse than natural gas cars, and natural gas cars didn't survive in the US market, so I don't think hydrogen cars are a good investment, but that's not really the claim either)