Toyota Motor Corporation (JP:7203) invested $45 million (¥7 billion) in a Japanese startup, Interstellar Technologies (IST), to accelerate the mass production of rockets. Toyota is making this investment through its mobility company, Woven by Toyota, which marks its continued expansion into the space industry. Toyota’s shares gained 1.5% in today’s session.
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Woven by Toyota, Inc. is responsible for developing and overseeing the software that powers Toyota’s vehicle operating system, autonomous driving, and safety features. Meanwhile, Interstellar Technologies Inc. is a space exploration firm that creates launch vehicles for satellite missions.
Toyota Bets Big on the Space Sector
This move reflects Toyota’s ongoing efforts to broaden its technological reach beyond automotive innovations into new sectors such as space exploration. Toyota further stated that it plans to apply its expertise in mass vehicle production to assist in the rocket manufacturing process with IST. As part of the new partnership, Woven will appoint a director to IST’s board and assist with rocket production by enhancing supply chains and corporate governance.
In addition to launch vehicles, Toyota is developing a lunar rover in collaboration with Japan’s space agency, designed to transport astronauts across the moon’s surface for NASA’s Artemis program.
Notably, the Japanese government plans to launch 30 rockets annually by the early 2030s, positioning Japan as Asia’s space hub. To support this goal, the government is also providing subsidies to startups like IST.
Is Toyota Stock a Good Buy Right Now?
Last week, DBS analyst Elizabelle Pang confirmed her Buy rating on Toyota’s stock. She also raised her price target from ¥3,000 to ¥3,500, predicting an upside of 14.7%.
On TipRanks, 7203 stock has received a Moderate Buy rating based on five Buy and two Hold recommendations by analysts. The Toyota share price target of ¥3,221.43 implies a growth rate of 5.5% in the share price.
