$TM Toyota Motors
**Full disclosure: I own 75k in Toyota calls. I also own a Porsche and Audi (no Toyota products). I’m also not good with investing. So don’t listen to me.
Wow, some of the best plays truly are right in front of you, because Toyota is hilariously undervalued now that they’ve decided to enter the EV market.
Toyota, is an engineering and business legend. Nobody engineers better than Toyota, nobody optimizes businesses and Toyota.
When I went through business school we studied Toyota in almost ever classroom. Toyota practically invented modern business practices and engineering practices.
If you haven’t heard of Toyota as a professional in business or engineering, you should probably be fired.
The following statements may sound like opinions, I’m pretty sure they’re facts.
- Dominates the manufacturing supply practice. Nothing is wasted in Toyota’s business, everything runs LEAN and AGILE. During economic downturns Toyota will always come out on top simply because they’ve perfected the art of efficiency.
- The finest engineers work at Toyota. Everything Toyota produces is an engineering marvel. Products optimized perfectly for each single demographic to be as affordable and reliable as possible while being practical and usable.
Today, Toyota officially entered the EV business. The company with a perfect supply chain, the company with the highest amount of consumer trust, the company that has the finest engineers in the entire automotive industry and a practically infinite amount of wealth…has entered the room. So let’s look at their positioning.
- Toyota is bound to be a huge recipient of the Biden’s plan to supply the federal government with EVs.
- Fun fact, the top “American” companies are asian. The big three make most of their junk abroad.
- Toyota is planning on being the first to deploy the SOLID STATE BATTERY.
- MASSIVE Energy density compared to existing technology.
- Solid state batteries can easily reach 500+ mile range.
- Much faster charge time.
- Have already begun the production process
- Toyota plans on unveiling the first solid state powered EV this year with release soon after.
- Toyota produces over 10,000,000 vehicles a year. Tesla reached 500,000 this year with a goal of 20% growth a year.
- Toyota is the most trusted brand internationally in the automotive world.
So Toyota, a manufacturing behemoth is switching to fully electric with aims of putting their world class engineers to produce the world’s first solid state battery commercial vehicle. Nice.
Let’s talk about some numbers:
- Price to book ratio of 1.137. Anything under 3 is considered undervalued. Tesla is around 40.
- PE ratio of 17.17. Anything under 20 is undervalued, Apple is at 37 and Tesla is 1301.
- Expected to increase margin from 5.5 -> 7.2
- 121% increase in operating income from China
- 24% Increase in cash/cash equivalents since Apr 2019. Impressive considering covid
- Relatively stable/balanced asset/liability ratio, has barely budged since covid).
- Has somehow decreased cost and expenses by 16% during covid.
If Tesla is the King Kong of the EV world, then Toyota is Godzilla, a nuclear powered dinosaur of a company from outer space. He’s landed and he’s gonna blow up your bubble. Yes I’m aware of the “Not just a car company” phrase, but as Burry said, “Enjoy it while it lasts”, because no company should be trading with a century of growth priced in.
Tl;dr
Toyota is here and it’s going to devour the EV market. Good long term purchase, but I have 75,000$ in calls.
Not a Toyota fanboy( I drive a Porsche and Audi). Don't take my advice.
Submitted February 11, 2021 at 12:09AM by Slow_Seaworthiness15 https://ift.tt/373wZN9
