Last Updated on 06/22/2021 by GS Staff
Does Lexus Have Stock?
You cannot solely purchase Lexus stock. The Lexus brand is owned by Toyota. You are able to purchase Toyota stock through most major brokerage accounts. However, an investment in Toyota is an investment in much more than just Lexus as we will explain later.
How To Invest in Toyota
Toyota Motor Corporation trades on the New York Stock Exchange (NYSE) under the symbol TM. Keep in that the company is headquartered in Japan so its stock is also listed on the Tokyo Stock Exchange and the Nagoya Stock Exchange. Additionally, it is also listed in London. You can buy shares in the United States through many online brokers such as Etrade, Ally, and Charles Schwab.
What Does Toyoya Own?
Toyota is one of the top carmakers in the world. It operates in the segments of Automotive, Financial Services, and what it calls All Other. The Automotive segment produces cars under Toyota and Lexus. It also has investment interests in Subaru and Suzuki. Some of the popular vehicles made by the company are Prius, Camry, Avalon, Crown, Tundra, Highlander, and 4Runner. The Financial Services segment primarily handles lease and purchase financing of vehicles. The All Other segment is involved in housings, telecommunications, and other business activities.
When Did Lexus Become a Part of Toyota?
Lexus was launched in 1989 as the luxury automotive brand of Toyota. The first two sedans were the LS 400 and ES 250. Quickly, Lexus became a major success in the U.S. market. By 1991, it beat out Mercedes-Benz and BMW in sales of luxury imports. The brand’s best year for sales of vehicles was in 2019 when it sold 765,330 units across the globe. While Toyota does not publicly release specific financial information on Lexus, it is believed that the brand contributes significantly to Toyota’s revenue.
Will Lexus Ever Be Publicly Traded?
We speculate that Lexus will remain a part of Toyota for the foreseeable future. The brand is a valuable piece of Toyota and purportedly contributes greatly to the annual revenue of the company as stated above. We don’t envision Toyota spinning off Lexus into its own company with its own stock any time soon. If you want a piece of Lexus, you will have to invest in Toyota and all that comes with it.
Publicly Traded Competitors
Here are some of the major competitors of Toyota that are publicly traded. You may wish to research these companies for potential investment in addition to Toyota.
- General Motors (NYSE:GM) – The iconic American automotive manufacturer is behind popular vehicles such as Cadilac, Buick, GMC, and Chevrolet. The company also owns OnStar, ACDelco, and GM Financial (auto financing).
- Ford (NYSE:F) – Ford’s business is broken down into three segments: Automotive, Mobility, and Ford Credit. The Automotive segment makes such vehicles as F-Series trucks, Lincoln, Bronco, Mustang, Explorer, and more. Ford Mobility is involved in creating autonomous vehicles and vehicle connectivity. Ford Credit is the auto financing segment of the company.
- Honda Motor (NYSE:HMC) – Honda is a fellow Japanese automaker to Toyota and the second largest in Japen. Additionally, the company is the largest manufacturer of motorcycles globally and they also produce power equipment. Some of the popular automobiles made by Honda include the Accord, Civic, CR-V, and Acura (the luxury line that competes with Lexus).
- Volkswagen AG (OTC:VWAGY) – The Volkswagen portfolio of brands includes many high-end names such as Porsche, Ducati, Bugatti, Bentley, and Lamborghini. Volkswagen and particularly Audi are the most competitive with Lexus. Similarly to other car manufacturers featured here, Volkswagen has a financial services segment.
- Tesla (NASDAQ:TSLA) – This company that is headed by Elon Musk is known for designing and manufacturing premium electric vehicles. Tesla is also involved in energy storage products and solar energy systems.