The battle between electric vehicles and hybrids has taken a new turn reportedly, with Elon Musk of Tesla Inc. (NASDAQ:TSLA) advocating for an electric future, while Toyota Motor Corporation (NYSE:TM)
Musk, aiming to surpass Toyota as the top automaker by 2030, faces a challenge as U.S. EV sales growth slows and hybrids gain new popularity, according to a news report by The Wall Street Journal.
This shift has been attributed to the recent success of Toyota and Lexus in the hybrid market.
"The buzz of electrification in the industry has somewhat mainstreamed hybrids," David Christ, the head of the Toyota brand in North America, said during an interview with The Wall Street Journal. "It's really had an awakening."
Hybrids offer a cost-effective alternative to all-electric vehicles, providing the benefits of electrification without the need for charging infrastructure. Toyota, a pioneer in hybrid technology with the release of its Prius sedan more than 20 years ago, is witnessing a resurgence in hybrid sales, countering the previous year's slump and challenging the narrative that EVs are the sole future of transportation.
Despite Tesla's notable 26% increase in all-electric vehicle sales, according to data firm Motor Intelligence, Toyota's broad range of electrified options, including hybrids, has seen a 20% increase in deliveries this year.
Toyota's strategy, which includes both hybrids and EVs, responds to diverse consumer needs, a viewpoint initially resisted by investors but is now gaining recognition
Toyota's commitment to this approach is exemplified by its announcement that the next-generation Toyota Camry in the U.S. will be exclusively hybrid.
This decision follows customer preferences, with hybrids often outselling their internal combustion counterparts in recent years. Toyota's ability to improve the cost and performance of hybrids has made them an increasingly attractive option for consumers.
Price Action: TSLA shares closed higher by 0.53% to $235.45 on Friday, up 11% to $235.70 after hours. TM shares closed higher by 2.21% to $188.30 after hours.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.