Subaru's First All-Electric Car: What We Know

Subaru made waves in auto news in November by introducing it's first all-electric car. The new vehicle is called the Solterra, and it represents a partnership with Toyota. Find out more about Subaru's new EV below, including what the entry might mean for Subaru Corporation's stock.

Subaru's Solterra SUV will hit North American markets in 2022. The car is an all-electric vehicle that's been designed and developed in partnership with Toyota. It's an example of one Japanese car company leaning on the expertise of its big brother, as Toyota is a pioneer in the hybrid car industry and is poised to make waves with its own fully electric car lineup.

In the beginning, the Solterra will rely on Toyota manufacturing in Japan. That may somewhat limit the scale and availability of the vehicle in the United States and other North American markets. Subaru notes that it plans to migrate manufacturing to its US-based plants if there's enough buyer demand for the vehicle after its launch.

One interesting note is that the Solterra will come in both a front-wheel drive and all-wheel drive option. This is a step off the traditional path for Subaru, which has long been known for producing only all-wheel drive cars. Even Subaru's storied marketing is narrative and experiential based, calling on the rugged nature of the "go anywhere" family vehicles.

As far as company value and stock prices go, moving into the EV market is a strong decision for any car company. The success of ventures like Tesla and the ESG-hungry demand of investors, consumers and governments make it likely that electric vehicles will play a major role in future automaker success. Subaru, like many other manufacturers, is simply getting ahead of the game to lay a stronger financial foundation for the future.