Toyota Stock (TM) Tumbles as Electric SUV Production Finally Launches at Kentucky Plant
Just as Toyota's Kentucky plant finally fires up its electric SUV production line, investors hit the brakes—sending TM shares into a skid.
Market Jitters Meet Manufacturing Delays
Years behind schedule, the launch was supposed to be a turning point. Instead, it's triggering sell-offs. Traders clearly expected more electric urgency from an auto giant playing catch-up.
Traditional auto meets modern anxiety—nothing says 'progress' like a stock dip on actual production news. Maybe next they’ll promise hydrogen-powered hype again.
Another 'transformative' moment that Wall Street greeted with a classic shrug—and a classic sell order. Some things never change, even when the cars do.
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However, it seems the news is not sparking much interest among investors, as the automaker’s shares dropped nearly 1% in early trading on Thursday morning, adding to the almost 2% decline from the day before.
The Kentucky site has been a key part of Toyota’s North American operations for almost four decades, producing, as part of its lineup, the Camry, one of the manufacturer’s most famous passenger cars in the United States.
Is Toyota Re-strategizing amid Trump Tariffs?
The latest development comes as Toyota appears to be making arrangements to boost its hybrid vehicle production in the U.S., while moving the luxury segment of its lineup to Japan. According to Nikkei Asia, Toyota is considering merging its two Lexus plants in the U.S. into one.
The Japanese automaker currently produces the Lexus ES sedans in Kentucky, while the Lexus TX SUV is assembled in Indiana. However, reports indicate the manufacturer might stop production of the ES once current orders are completed, with the next model to be exported from Japan.
Rivals Take the Other Road
On the other hand, other Asian automakers appear to be taking a different road, even as President Donald Trump’s tariffs on imported vehicles, including from Japan, force automakers to reconsider their manufacturing strategies.
Earlier in the year, Hyundai (HYMLF) disclosed plans to invest $21 billion in the U.S. over the next four years. Tokyo-based Hitachi (HTHIY) also recently launched a $100 million factory in Maryland to produce train cars.
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