Toyota Motor Corp. (NYSE: TM) is on a roll. Its stock hit an all-time high, primarily due to an increase in its forecast annual net profit for the fiscal year ending in March. Toyota expects that figure to be $30 billion.

Toyota is the world’s largest car market by unit sales and revenue. It sold 11.2 million cars last year, primarily from its Toyota and Lexus divisions. The second largest car company in the world, Volkswagen, sold 2 million fewer. (These 11 cars are still mostly made in America.)

Toyota Takes a Different Path

Toyota has received criticism recently for not throwing its weight behind electric vehicles (EVs). The industry has said EVs are the wave of the future. This is due not only to a desire to reduce greenhouse gas emissions but because they are cheaper to operate than gasoline-powered cars. However, after investing billions of dollars in EVs, companies like Ford Motor Co. (NYSE: F) found out that many consumers worried about the number of charging stations, the distance EVs could go on one charge, and charging time. And gas prices, particularly in the United States, have been low—about $3 per gallon for regular.

Toyota took a different road, which involved doubling down on its hybrid business. It created the best-selling hybrid in the world, the Prius, more than a decade ago. Toyota has sold well over 4 million Prius units since its launch. As it announced its forecast increase in profits, the company stated, “Hybrids are being recognized as a realistic solution to achieve carbon neutrality.”

Toyota’s plan has received the approval of Wall Street. Goldman Sachs noted, “We think the market is now rethinking the potential of hybrid products, which are a strength of Toyota,” according to CNBC. Ford said when it posted its January sales that hybrid sales had grown quickly. This was also a reason for investors to consider that America’s number two car company had taken a wrong turn with its heavy investment in the EV market.

In Toyota’s world, gasoline-powered cars will share the market with hybrids and EVs. Investors agree that is the correct path.

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