Good news – you don’t have to dump your Tesla (NASDAQ:TSLA) stock and other electric vehicle stocks to be prepared for what’s coming. Electric cars are crucial, but hybrid electric vehicles are also gaining traction. Toyota Motor (NYSE:TM) is among the vanguard, so you’ll definitely want to add some Toyota stock to your holdings.
If you’re not aware of this ongoing shift in the EV market, it’s time to make some changes to your investment strategy. Here’s an eye-opening prediction: JPMorgan analyst Akira Kishimoto forecasts 22.6% hybrid growth in 2024.
Toyota’s RAV4 hybrid SUV is already a popular pick among HEVs. Moreover, as we’ll discuss in a moment, Toyota is preparing to roll out a HEV model that’s surprisingly affordable. So, today is the day for investors to take decisive action – are you ready for the hybrid uprising, or not?
Hybrids Accelerate Past Fully Electric Cars
As EV demand remains stubbornly soft, HEV demand is picking up speed in 2024. Toyota leaned fully into this trend, as the company reported that the “Prius, Prius Prime, Camry HEV, Crown and RAV4 HEV all posted strong triple-digit gains” in this year’s first quarter.
It might seem like a risky strategy for Toyota to focus strongly on HEVs. However, a report from The Wall Street Journal made it crystal clear that hybrids are the vehicles of the present and the future.
According to the WSJ, HEV sales increased 43% in this year’s three-month period of January through March. Meanwhile, EV sales were comparatively lackluster as they only rose 2.7% during the same quarter.
It’s almost as if the consumers are shouting at automakers, telling them to make more vehicles that can fuel up at both gas pumps and EV charging stations. In this context, Toyota should be recognized for accommodating the consumers’ demands.
Toyota’s Hybrid Camry Will Be Surprisingly Affordable
In case you aren’t already convinced that Toyota is all-in on hybrids, check this out. Starting with the 2025 models, the Toyota Camry sedans will be “100 Percent Hybrid, No Compromise.”
Toyota’s press release touts the 2025 Camry’s “Electronic On-Demand All-Wheel Drive” and “Electronically Controlled Braking system.” That’s all fine and well, but the real eye-catcher is the starting price.
Surprisingly, the 2025 Camry HEV models will start at a Manufacturer’s Suggested Retail Price of just $28,400. That’s actually $400 less than the “outgoing Camry Hybrid base grade.”
Okay, so the 2025 Camry HEV buyers will also have to pay a dealer processing and handling fee of $1,095. Plus, they’ll probably also end up paying for the taxes, tag, title and so on. Still, they’ll get a brand-new, feature-rich hybrid car at a reasonable price. Thus, for budget-conscious consumers, the automotive price war is turning out to be a real blessing.
Takeaway: It’s Fine to Own Both Tesla Stock and Toyota Stock
Some commentators might suggest that Toyota, with its focus on HEVs, is the anti-Tesla. However, it’s not an either-or scenario for your portfolio, and you don’t have to choose sides in this debate.
Instead, you can maintain a shared stake in both Tesla and Toyota. That way, you can bet on two different horses to win the race, so to speak.
All in all, whether you’re invested in Tesla or not, the time to future-proof your portfolio is right now. Join the HEV revolution before it passes you by, and add some Toyota stock shares to your long-term holdings.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.