Shares of Toyota Motor rose for a third straight session and hit a record high on Tuesday, as investors continued to bet on the Japanese automaker’s ability to tackle a global chip shortage better than its rivals.
The rise in Toyota shares helped lift stocks of other car makers that have come under pressure due to competition from electric vehicle manufacturers as well as chip shortages.
Toyota, the top Japanese company by market capitalisation and the world’s biggest automaker, has weathered the chip shortage better than many of its rivals and has forecast a return to pre-pandemic profit levels this year.
Toyota shares rose 2.3% to a record high of 8,850 yen ($81), surpassing their previous peak reached in 2015.
Honda Motor shares rose 3.4%, while loss-making Nissan Motor stocks gained 1.7%, in a broader market that was up about 2%.
The gains also reflect investors’ interest in manufacturers of combustion engine vehicles globally as cheaper bargains versus electric vehicle makers such as Elon Musk’s Tesla that have expensive valuations, analysts and fund managers say.
Shares of Volkswagen have gained nearly 40% this year, while Stellantis has risen 28%.
In contrast, Tesla has lost 18% of its value and Nikola has shed 15% since the start of 2021.