Why Cathie Wood's ARK Remains Unimpressed By Toyota's EV Strategy

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.

See Also: Best Electric Vehicle Stocks

“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.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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