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Toyota (TM) to Make $531M Investment in Texas Truck Plant

Zacks Equity Research
·2 min read

Toyota Motor Corporation TM is planning to invest $531 million in its truck manufacturing facility in Texas. With this investment, the company aims to improve the production of vehicle components at the facility that assembles the Toyota Tundra and Toyota Sequoia.

The project is expected to create 411 jobs and could span more than 500,000 square feet of new space. The proposal awaits Bexar County’s approval and highlights the company’s plans and potential community benefits.

Bexar County is contemplating incentivizing the project to include a 10-year, 100% tax abatement worth $14.7 million and a skills development grant of up to $250,000. These incentives hinge on creating 250 jobs with an average annual salary of $71,864.

In the past few years, Toyota has invested heavily in its Texas plant, including a $398 million upgrade in 2019 for its body-on-frame vehicle lineup redesign. This ongoing investment highlights Toyota's dedication to producing quality vehicles in the United States and meeting customer needs effectively.

The county is contemplating another potential grant for off-site public infrastructure improvements. Final approval from county commissioners would be necessary for any agreement.

This Japan-based carmaker aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. The company plans to invest more than $35 billion in EVs through 2030 and introduce 30 new EV models by the end of the decade. It aims to expand global sales of battery EVs to 1.5 million units per year in 2026 and 3.5 million units a year by 2030.

Zacks Rank & Key Picks

TM currently carries a Zacks Rank #4 (Sell).

Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Blue Bird Corporation BLBD and Oshkosh Corporation OSK, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. EPS estimates for 2024 and 2025 have improved 72 cents and 67 cents, respectively, in the past 30 days.

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Toyota Motor Corporation (TM) : Free Stock Analysis Report

Oshkosh Corporation (OSK) : Free Stock Analysis Report

Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report

Blue Bird Corporation (BLBD) : Free Stock Analysis Report

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Zacks Investment Research