It’s no secret that the automotive industry is taking on a permanent shift towards electric vehicles (EVs). Some auto companies have gone as far as announcing future dates in which car models will cease to carry the traditional internal-combustion engine. It’s an exciting and scorching hot industry, with a lot of money to be made as a company or as an investor.

There have been exciting developments in the EV space as of late, and that’s what we’re here to talk about today. Toyota Motors

TM

has recently announced that its cutting-edge bZ4X SUV will start hitting dealership floors this spring and Tesla

TSLA

recently hosted Cyber Rodeo, an event that celebrated the opening of its new Giga Texas factory.

Let’s dive deeper into the recent news and analyze a few key metrics of each company to better understand what’s going on in the EV Industry.

Toyota Motors

Japan-based Toyota Motor

TM

, founded in 1973, is a worldwide leading automaker with various brands, including Toyota, Lexus, and Scion. It has a robust portfolio of product lines as well, including the Toyota Prius – a car widely recognized as a pioneer in the hybrid space.

In order to reap the benefits of the accelerated shift to EVs, Toyota is focusing intensely on manufacturing electric and fuel-cell vehicles. By 2025, the auto giant aims to generate 40% of its global sales from EVs, and in the same year, Toyota plans to introduce fuel-cell enabled SUVs and pick-up trucks. Over the next nine years, Toyota will invest more than $70 billion in EVs, and by 2030, 80% of Toyota’s global lineup will be electrified.

The new Toyota bZ4X, starting at $42,000, is the first vehicle to be built on Toyota’s BEV-dedicated (battery-electric vehicles) e-TNGA platform. The vehicle uses a high-capacity lithium-ion battery pack placed under the floor with a range of 230 – 250 miles on a single charge depending on the drivetrain selected.

The range estimates may disappoint potential buyers, as 300 miles per charge has become the benchmark for EVs. However, according to the EPA, the average estimate of savings in fuel costs over five years for the FWD bZ4X compared to the average new vehicle is up to $5,000.

The car’s hammerhead shark-like shape from the hood to the headlights provides it with a sleek silhouette, and its curved bumper is distinct from any other Toyota vehicle. The bZ4X is the first Toyota vehicle to be launched under the global bZ series, with more models on the horizon looking to elevate its BEV segment further. Additionally, the “bZ” acronym stands for “Beyond Zero,” a symbol of Toyota’s plans to achieve carbon neutrality by 2050.

Two analysts have downwardly revised their current year EPS estimates over the last 60 days, causing the Consensus Estimate Trend to slide down 0.8% to $18.07 per share. For the next year, the Consensus Estimate Trend has slipped 8%, now reflecting EPS of $19.27. Additionally, Toyota has a four-quarter trailing average EPS surprise of nearly 42%, and in its latest quarter, the company beat EPS estimates by almost 35%.

The current year’s $280 billion sales estimate reflects a year-over-year top-line expansion of 8.6%, and next year’s sales estimates represent a marginal 0.9% year-over-year increase. TM is a Zacks Rank #3 (Hold) with an overall VGM Score of a C.

Tesla

Last Thursday, during Tesla’s

TSLA

Cyber Rodeo event, attendees got a chance to see the latest developments within the widely-sought after Cybertruck. To provide a quick refresher, Tesla designs, develops, manufactures, and sells EVs and stationary energy storage products.

Gigafactory Texas is now the official headquarters of Tesla. When asked about the move, CEO Elon Musk stated that the company was simply “running out of room” in California and that the best place to come would be Texas – a state that knows how to do it big. To put things into perspective, the 15 city-block long Gigafactory is the largest factory in the entire world and has over 330 million cubic feet of volume.

The Cybertruck, first revealed in 2019 with its infamous window shatter, has undergone minor changes since its initial appearance, perhaps signaling that Tesla is close to finalizing the electric truck’s look. A few of the changes include an updated wheel design, a single wiper blade, a new steering system, and exterior cameras for the Autopilot system.

Even though Texas’ Gigafactory is laser-focused on its Model Y production, CEO Elon Musk stated that Cybertruck production would start next year in the plant. Rolling into next year, the Cybertruck will face competition from others, such as Ford

F

, Rivian

RIVN

, and General Motors

GM

, perhaps dampening the demand outlook for the electric pickup. Additionally, the price tag for the widely-sought after Cybertruck is expected to increase significantly due to rising production costs.

Overall, the new factory is expected to significantly ramp up production and provide a much higher efficiency level than its previous headquarters. When designing the factory, Elon Musk said that his floor plan vision resembled that of an integrated chip, one that combines all production processes into one complete package. The previous headquarters relied heavily on transporting production materials back and forth from different buildings on the factory’s premises.

Over the last 60 days, analysts have been upwardly revising their current year’s EPS estimates, boosting the Zacks Consensus Estimate Trend up 6.3% to $9.83 per share. For next year, EPS estimates have climbed nearly 4%, up to $12.66 per share. The company has a four-quarter trailing average EPS surprise of 33%, and in its latest quarter, Tesla beat EPS estimates by 20%.

The Zacks Consensus Sales Estimate of $83 billion reflects a massive 54% jump in revenue year-over-year. Additionally, the next year’s sales estimate of $110 billion represents a notable 33% jump in sales. Tesla is a Zacks Rank #1 (Strong Buy) with an overall VGM Score of a D.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research