Toyota Motor reported a third straight session raise for its shares. The three-strikes brought shares of Toyota to reach a record high on Tuesday. The jump in Toyota‘s shares is likely due to the company’s capability in handling its chip supply amidst the global chip shortage, providing reassurance for the investors. The news further elevated shares for other carmaker companies.
Toyota, one of Japan’s top automakers managed to control its chip supply better than its rivals. Previous reports mentioned that Toyota has been stockpiling its semiconductors. This provides Toyota with enough semiconductors supply for engine maintenance, car safety, and even entertainment systems. Thus, it is very unlikely the company might face any major short term impact from the global chip shortage.
Additionally, the company expects to reach pre-pandemic profit levels this year.
Toyota’s achievement boosted its shares 2.3% higher to a record high at 8,850 yen ($81). The digit outnumbers the peak reached in 2015.
Quoted from Reuters, a senior strategist at Mizuho Securities, Nobuhiko Kuramochi, said, “As supply chain disruptions due to chip shortage hamper the automaker industry, Toyota has been regarded as the company investors can buy.”
Following the news, shares for other carmakers also rose higher. Previously, the global chip shortage issue put other automaker companies under pressure. The competition between automakers in developing electric vehicle came as a big challenge as well.
Noted from Reuters, Honda Motor shares grew 3.4%. Nissan Motor stocks also gained 1.7% in a broader market that was up about 2%.
Read also: Chip Supply Under Control, Toyota Expects Rebound in Profit
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
