Toyota (TM) Stock Slides 2.6% Following Massive $3.6 Billion Texas Plant Investment

Key Takeaways

• Toyota (TM) experienced a decline of up to 2.6% in after-hours trading Monday following the revelation of a $3.6 billion manufacturing campus expansion in San Antonio, Texas.
• The project will introduce a second assembly line for vehicles and generate 2,000 additional American jobs by the end of the decade.
• Production of the Tacoma model will relocate from Mexico to the Texas facility over roughly four years, boosting the location’s annual output capacity to 350,000 vehicles.
• This expansion aligns with Toyota’s updated commitment to invest an additional $10 billion beyond original projections in American manufacturing operations through 2030.
• During the first six months of 2026, Toyota recorded a 0.5% increase in U.S. sales, reaching 1.24 million vehicles, compared to General Motors’ 6.8% decrease to 1.34 million units.

Toyota Motor (TM) saw its stock price decline by as much as 2.6% during after-hours trading Monday following the automaker’s announcement of a substantial $3.6 billion expansion project at its San Antonio, Texas manufacturing facility.

Toyota Motor Corporation, TM

The significant capital commitment will establish a second vehicle assembly line at the complex and is projected to add approximately 2,000 new employment opportunities by 2030.

The manufacturing site, which presently assembles the Tundra and Sequoia models, will expand its operations to include production of the Tacoma midsize pickup truck. This manufacturing work is being relocated from Toyota’s production facility in Tijuana, Baja California, Mexico.

The relocation process is anticipated to span approximately four years.

The development will expand the campus footprint by 2.5 million square feet, effectively doubling its size from 2.7 million to approximately 5.2 million square feet. The site’s annual manufacturing capacity will grow from approximately 200,000 vehicles to roughly 350,000 units.

“By expanding our San Antonio plant, we are deepening our commitment to American manufacturing,” said Ted Ogawa, President and CEO of Toyota Motor North America.

Component of Broader American Investment Strategy

This development represents a segment of Toyota’s strategic plan to deploy up to $10 billion beyond previously announced figures in American manufacturing infrastructure through 2030.

The announcement arrives after the Trump administration chose not to renew the existing trilateral trade agreement with Canada and Mexico, instead implementing annual review procedures.

Toyota clarified that it will not completely withdraw from Mexico. The manufacturer confirmed it will continue its Mexican operations and maintain Tacoma production at its Guanajuato manufacturing facility.

Since initiating construction in San Antonio in 2003, Toyota has now committed a cumulative total of $8.3 billion to the location. The on-site workforce is expected to expand to approximately 6,000 employees, complemented by 23 suppliers operating at the campus.

Toyota maintains direct employment of roughly 48,000 individuals across 11 manufacturing plants throughout the United States. The company’s North Carolina facility commenced automotive battery assembly for electrified vehicles in 2025.

Narrowing the Sales Gap with GM

Regarding market performance, Toyota continues to reduce its distance from General Motors in the American automotive marketplace.

In the first half of 2026, Toyota registered a 0.5% increase in U.S. sales, totaling 1.24 million vehicles. Meanwhile, GM experienced a 6.8% decline, with sales reaching 1.34 million units during the identical timeframe.

Analyst coverage for TM stock over the past three months has been limited to one firm. Dmitriy Pozdnyakov of Freedom Capital Markets maintains a Buy rating on the stock with a price target of $230.