That's not smart by Toyota (unless they own a very small stake), is it? Mazda competing with Toyota is indeed bad for Toyota but it's also bad for all the other auto manufacturers too. The benefit of that competition goes exclusively to Toyota (among other shareholders) but the cost is shared among all automakers roughly in proportion to their EV market share.

Mazda has been focused on continuing to improve internal combustion engines over the past couple of decades. Specifically, the "Skyactiv" technology they developed was built to help improve efficiency and emissions of modern ICE engines. It's likely Toyota wanted to have some group/company (like Mazda) continue working on improving ICE engines while also investing in EVs.

I think ICE vehicles will continue to have a market, especially in very remote areas of the world where power grids are non-existent or not very reliable.

The guy who designs Tesla vehicles actually used to work for Mazda as chief of design: https://en.wikipedia.org/wiki/Franz_von_Holzhausen

There is one coming apparently but the range is fairly sad: https://www.mazda.com/en/new-generation/mx-30/ .

MX-30, Mazda's first EV but also ICE model, features touch panel A/C control for unknown reason. I tried it and found that it's difficult to adjust while driving. The decision really weird since Mazda avoid touchscreen for navigation and also avoid for A/C on other cars.

I feel like in the old days, Mazda would have been the one to introduce a Maverick sized truck, and they likely would have been leading the way with electric.

Its too bad that the Ford partnership fell apart.

Ford has chosen to grant your wish: https://www.ford.com/trucks/maverick/2022/ - a real compact pickup with hybrid technology available at the base price of $20k.

That was the vehicle I was referencing. I was saying that this vehicle would have been a joint effort if the partnership were still alive. I could see Mazda owning the small EV segment for Ford too.