(Bloomberg) -- Toyota Motor Corp. shares topped 10,000 yen ($90.85) for the first time on Tuesday, extending a rally that has lifted the stock to multiple new highs this year.

The stock rose as much as 1.8% in Tokyo to clear the milestone, with investors continuing to buy into company as it defies the threats of chip shortages weighing on the automobile industry and strives to expand its electric-vehicle initiatives.

The Japanese automaker is leading an industry that is struggling to cope with the chip shortage by managing its supply chain and increasing production to meet rising demand for cars. The company announced a 250 billion yen share buyback and forecast a return to pre-pandemic profitability for the current fiscal year when it reported earnings in May.

“Simply put, it is a reflection of Toyota’s strong fundamentals,” as seen in its results for last year and its forecast for this year, said Tatsuo Yoshida, a senior analyst at Bloomberg Intelligence.

Japanese peers also extended gains following Toyota’s rally, with Honda Motor Co. adding as much as 1.1% and Nissan Motor Co. rising 1.2%. Subaru Corp. gained as much as 2%.

Toyota’s shares have risen 26% so far this year. Still, its market value is about half that of Tesla Inc., which overtook Toyota as the world’s most valuable automaker last year.

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Toyota is racing to catch up with rivals in the EV market, and plans to introduce two all-electric vehicles in the U.S. starting in 2022. The firm is aiming for all-electric or fuel-cell-powered vehicles to make up 15% of total U.S. sales by 2030.

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“Recent announcements regarding electrification initiatives including a battery procurement plan were a strong statement that wiped off the misconception held by some market participants that Toyota is behind” other automakers, Yoshida said.　

The company is also considering shifting electric-vehicle production to the U.S. if demand from American consumers continues to grow, a top executive at the firm said in an interview earlier this month.

Toyota’s shares won’t stay at 10,000 too long however -- the automaker is set to conduct a stock split later this year. The five-for-one split is effective on Oct. 1.

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