The Stock Market Is Hating That Toyota Dumped Its Investment in Tesla –

This post was originally published on this site

Toyota Motor Corp. (TM) shares traded firmly lower in Tokyo Monday after the world’s second-largest automaker revealed over the weekend that it had sold the last of its remaining stake in Tesla Inc. (TSLA)

The sale, which had occurred prior to the end of 2016 but only made public in a statement from the company Saturday, could signal a new urgency in its push into electric and autonomous vehicles. Nonetheless, the move marks the end of a collaboration the two groups began in 2010, when Toyota bought a $50 million stake in Elon Musk’s group that eventually led to the development and sale of the RAV4 in both Canada and Japan a few years latter.

Toyota shares traded 1.92% lower by the end of the session in Tokyo at ¥5,976.00 each, extending their year-to-date decline past 13.1%. The broader Nikkei 225 ended the session with a modest 0.03% decline but has gained around 5.5% so far this year. Tesla shares have booked a 60% year-to-date gain.

Toyota unveiled its own electric car unit in November of last year that it said would mass produce long-range vehicles that it hoped would be ready for commercial by 2020, reversing its long-standing view that batteries needed for such cars would be too expensive. Toyota has also said it wants its entire fleet of cars sold to be emissions-free by 2050.

Click here for the latest business headlines.

Read More Trending Articles: