From the Wall Street Journal's Corporate Intelligence blog:
Toyota Motor Corp.7203.TO +0.64% isn’t going to be investing heavily into electric vehicles and the company Chairman, Takeshi Uchiyamada, doesn’t think there is much of a market for them.
“The reason why Toyota doesn’t introduce any major [all-electric product] is because we do not believe there is a market to accept it,” Mr. Uchiyamada said in an interview following a speech on Monday at the Economic Club of Washington, D.C.
That’s not to say Toyota hasn’t benefited from its partnership with electric vehicle maker, Tesla MotorsTSLA -6.66%. Toyota has received a powertrain for its RAV4 electric vehicle and also some venture-fueled excitement for its employees. Oh — and it also has paper gains of approximately $503 million on the 2.941 million shares of stock it bought in the Palo Alto, Calif.-based auto maker.
Back in 2010, as a way to cement a partnership with Tesla, President Akio Toyoda agreed to buy the shares at $17 for a nearly 3% interest. Since then, Tesla’s shares have shot through the stratosphere and are now approaching $190.
Mr. Uchiyamada said the company hasn’t talked about selling the shares to bank a profit, even though it would stand to make a substantial amount.
“The reason that the company decided to invest in Tesla was not to target a profit gain. We did it as a means to further a partnership between the companies,” he said. “If it was my personal shares, maybe I would consider that.”...MORE
