Latest news with #ToyotaMotor
Yahoo
11 hours ago
- Automotive
- Yahoo
Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance
Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance originally appeared on Autoblog. Toyota has a big year ahead, with fully two dozen new models set to debut under the Toyota and Lexus brand names. But the Trump administration's tariffs has left the carmaker in a state of limbo, while a new ruling by a federal trade court has only complicated matters. The Japanese automaker is stuck in a 'wait and see mode,' David Christ, group vice president and general manager of the Toyota Division, told Autoblog during an interview at Toyota headquarters. Under the tariffs announced in April, and formally enacted on May 3, automakers like Toyota face a 25% hit on imported autos and auto parts, potentially putting many products 'out of reach for a lot of Americans,' said Mark Templin, executive vice president and chief operating officer, Toyota Motor North America. How to respond to the new tariffs is a question Toyota is still trying to figure out, Templin and other senior executives told Autoblog. The answer could affect pricing, marketing, and manufacturing plans. Toyota has to rethink whether some base models should remain available in the US. Trying to figure out how to respond to the tariffs is no easy task, as manufacturers have yet to get clear guidance from the White House. The new sanctions are supposed to cover imported autos and auto parts. But how will parts and components that repeatedly cross the border be handled? How will they be applied to parts produced in Mexico and Canada covered by the USMCA trade deal signed during the first Trump administration? Meanwhile, Trump has signaled he might tweak the auto tariffs. He's already rolled back duties on imported computers and smartphones, rolled back tariffs on China, and delayed other sanctions. If those weren't complicating matters enough, the Court of International Trade on Wednesday ruled that the president didn't have authority to impose his sweeping tariffs under the International Emergency Economic Powers Act, as Trump claimed. But that ruling has been paused while it's reviewed by a federal appeals court. 'We need to understand the rules,' one Toyota executive said during a meeting at the automaker's headquarters in Plano, Texas last week. The new legal twist makes that even more challenging – and makes it more difficult for Toyota to move forward on its plans for the coming year, and beyond. One big question: is the product roll-out it has scheduled this coming year still viable? Among other things, Toyota has to figure out how much tariffs might add to each of its vehicles – and whether to pass higher prices onto consumers. It may also have to consider whether to shift production of some parts, components and vehicles to avoid or, at least minimize, the impact of tariffs. Toyota builds roughly 50% of the vehicles it currently sells in the United States at 11 U.S. plants. That climbs to 80% if you include three Canadian and Mexican assembly lines. But even those could be impacted by the new trade sanctions due to their reliance on imported parts and components. Last year saw U.S. auto sales nip the 16 million mark for the first time since the pandemic – though that remained well behind the 17.5 million record set in 2016. Nonetheless, the trajectory seemed bound to keep climbing. Toyota's target for the industry this year was 16.1 million, with some bullish estimates as high as 16.5 million. But there's widespread expectation that this will drop sharply should the tariffs remain in effect for an extended period. Cox Automotive now forecasts a figure of around 15 million and as low as 14 million should the new trade sanctions trigger a recession. While Trump has warned automakers not to pass tariff costs onto consumers, Christ said that would be difficult for even the most profitable manufacturers. Rival General Motors, for one, has forecast it could see a $5 billion impact from the new sanctions. For its part, said Christ, how much it passes on to consumers likely will vary by model line and market segment. For one thing, it needs to see what the competition is doing. No matter what product, 'a 25% increase hurts' buyers, he said, though 'maybe the higher-end customer has a little more flexibility in their budget than a low-end customer.' Toyota is particularly vulnerable at the low end, the executive acknowledged, noting that it has six product lines available under $30,000, starting with the Corolla which carries a base price of $22,035. The problem is that for entry-level buyers, even 'a 1% increase (in price) could take away 10% of the market' for affordable vehicles, said Jonathan Smoke, chief economist at Cox Automotive, during a meeting of the Automotive Press Association. Toyota's policy is to build as many vehicles as possible in the markets where they are sold, noted Templin. And it isn't averse to adding even more capacity. But that isn't as easy as simply throwing a switch. 'You can't simply move production facilities overnight,' cautioned Templin. It could take years to see new assembly plants added to the 11 Toyota already operates in the U.S. Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance first appeared on Autoblog on May 30, 2025 This story was originally reported by Autoblog on May 30, 2025, where it first appeared.
Yahoo
11 hours ago
- Business
- Yahoo
Why Joby Aviation Stock Soared 17.6% This Week
Joby Aviation got a $250 million investment from Toyota this week. The company is working through approvals for its air taxi product. The stock is wildly overvalued for a company that does not generate any revenue. 10 stocks we like better than Joby Aviation › Shares of Joby Aviation (NYSE: JOBY) soared as much as 26.8% this week, according to data from S&P Global Market Intelligence. The air taxi start-up is currently up 17.6% this week as of 3:47 p.m. ET on Friday, May 30. This increase is due to an announced investment from Toyota Motor into the company for a combined manufacturing partnership. The stock shot up on the announcement but has since given back some of its gains. Here's more about why Joby Aviation stock was soaring this week. On May 27, Joby Aviation announced a new investment of $250 million from Toyota Motor, which was part of a previously announced $500 million commitment from the automotive manufacturing giant. Joby Aviation is building an electric air taxi, and this money -- along with Toyota's expertise -- will help the company move through certification and try to get its manufacturing to scale. Joby Aviation does not have an operating business yet. It is trying to disrupt the transportation market with its vertical takeoff vehicles, which are similar to helicopters but much quieter. The vehicles are not approved for flights yet and are currently under the review process by the Federal Aviation Authority (FAA). Since this is a disruptive new aircraft, product approval will take a long time to make sure all safety standards are being met. Last quarter, the company ended with $813 million in cash and equivalents plus the $500 million commitment from Toyota. Now, it has $250 million coming to its balance sheet to help it keep investing for product development and certification. It is going to need the money. Joby Aviation burned $489 million in free cash flow over the last 12 months, giving it only a few years left of cash burn before it will run out of money. After the recent surge, Joby Aviation stock has a market cap of $6.57 billion. It generates zero revenue. While the new air taxi product is potentially disruptive, investors should be cautious about investing in a product that has not even been approved to operate. Even if Joby Aviation can start selling vehicles and generating hundreds of millions or even a billion dollars in revenue, that does not make the stock cheap compared to its current market cap of over $6 billion. Share dilution is going to impact returns as well, with shares outstanding up 10% in the last year. For all these reasons, Joby Aviation stock is one investors can easily discard at current price levels. Before you buy stock in Joby Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Joby Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Joby Aviation Stock Soared 17.6% This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
14 hours ago
- Automotive
- Business Insider
Toyota Motor (TYT) Receives a Hold from Morgan Stanley
In a report released yesterday, Shinji Kakiuchi from Morgan Stanley maintained a Hold rating on Toyota Motor (TYT – Research Report), with a price target of Yen2,850.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Kakiuchi is a 3-star analyst with an average return of 5.3% and a 55.26% success rate. Currently, the analyst consensus on Toyota Motor is a Moderate Buy with an average price target of Yen2,962.50. TYT market cap is currently Yen35682.3B and has a P/E ratio of 7.57.
Business Insider
21 hours ago
- Automotive
- Business Insider
Toyota Motor (TYT) Receives a Buy from Goldman Sachs
In a report released today, Kota Yuzawa from Goldman Sachs maintained a Buy rating on Toyota Motor (TYT – Research Report), with a price target of Yen3,100.00. The company's shares closed yesterday at Yen2,722.00. Confident Investing Starts Here: Yuzawa covers the Consumer Cyclical sector, focusing on stocks such as Toyota Motor, Toyo Tire, and Mitsubishi Motors. According to TipRanks, Yuzawa has an average return of 8.1% and a 55.00% success rate on recommended stocks. Toyota Motor has an analyst consensus of Moderate Buy, with a price target consensus of Yen2,987.50, a 9.75% upside from current levels. In a report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a Yen3,200.00 price target.
Motor Trend
2 days ago
- Automotive
- Motor Trend
The Toyota Supra Is Dead Again—But It'll Be Back Sooner Than Last Time
Toyota has a final edition 2026 GR Supra on the way as it prepares to sunset, yet again, its fun sports coupe. Production of the fifth-generation Supra, which takes place alongside the related BMW Z4 at a Magna plant in Austria, is set to conclude in spring 2026. It is not cost-effective to give the low-volume car the upgrades needed to meet new and pending global regulations. 0:00 / 0:00 The good news: there will be a successor. The bad, but likely not surprising news: there will be a gap between today's Supra and its follow-up model. This is not without precedent, either. The current GR Supra returned after a 20-year hiatus. Its return was made possible by developing it in partnership with BMW, which created the mechanically related BMW Z4 from the same bones and supplies the turbocharged inline-six engine that powers both cars. 'It would be logical that we would have a next-gen Supra. But when and how is still TBD,' senior vice president of Product Planning and Strategy for Toyota Motor North America Cooper Ericksen told us in a recent interview. Upside—That Gap Won't Be As Long 'Definitely there will be a gap. The question is how big will that gap be,' Ericksen says of the timing of the Supra successor. 'It is our goal to have a gap that is significantly less [than the last one].' While turning around a new Supra in fewer than two decades is a low bar, we suspect Ericksen means it when he says the aim is be quicker this time. Toyota executives in the U.S. don't have timing to share, largely because it is a decision that will come from Toyota Motor Corporation in Japan. TMC will also make the decision on whether to continue to partner with BMW or develop the next Supra itself. 'We would love to build a next generation Supra,' said David Christ, general manager of the Toyota Division for Toyota Motor North America, but Toyota has not officially announced plans to do so. Christ says he would love to be part of the planning on this one, but his influence is limited. 'That decision is way out of my pay grade. I'd love to be in that meeting, but I probably won't be.' Toyota Has Lot on Its Plate There are a lot of moving pieces, Ericksen says. For starters, it is as much a question of resources. Toyota just introduced the 2026 RAV4, an all-new vehicle with a new electrical platform and new multimedia and new safety features, technologies that will eventually be rolled out on the roughly 35 Toyota and Lexus models available in the U.S. which requires a tremendous amount of resources. 'We would love to do everything now,' Ericksen says, but we have our hands full just to keep selling our core products in our lineup.' Ericksen likened it to a house that can be remodeled or scrapped in favor of building an all-new one. 'A product like Supra, it's made it to a point where now we have a Final Edition and the reason is it's just not cost effective with all the new regulations and investment we have to make. It needs to be a new house. When we can get the new house built is the question.' The desire and expectation are there. 'It's our goal to have a next generation Supra,' Ericksen says, with or without a partner. 'We'll just have to wait and see. My goal is to get a great next-gen product that our enthusiast crowd can fall in love with again.'
