Toyota Motor Corporation (NYSE:TM) shares are trading lower premarket Thursday. The company will reportedly delay electric vehicle (EV) production in North America to the first half of 2026 due to slowing sales in the key auto market.
The car manufacturer cited design adjustments as a factor for the postponement and will reconsider the start date, reported Nikkei.
The company plans to launch 10 new EV models globally by 2026, with the Kentucky plant's SUV anticipated to be part of its next-generation EVs featuring an updated chassis.
Read: Toyota Aims To Reduce EV Costs with Gigacasting Machine
In September, Toyota stated it plans to cut its electric vehicle production target for 2026 to a million cars, 30% below its earlier forecast, amid a slowdown in global demand.
As per the new strategy, Toyota aims to produce over 400,000 EVs in 2025 and more than double that number the following year. This marks a significant reduction from its previous target of 1.5 million EVs by 2026.
This month, Toyota reported September U.S. sales of 162,595 vehicles, with electrified models accounting for 48.4% of total sales.
Lexus sales declined by 14.5% in September, while third-quarter sales for Lexus increased by 8.1% on a volume basis.
As per the report, Toyota abandoned plans to manufacture electric Lexus SUVs in North America by 2030. Instead, they will import them from Japan.
Also Read: Toyota's Global Output Tumbles 11% After Suspension Of Production Of 2 SUVs In North America
Yesterday, Toyota said it will invest $500 million in Joby Aviation, Inc. (NYSE:JOBY) to support the certification and production of electric air taxis.
The investment will be made in two equal tranches of $250 million each. The first tranche is expected to close later this year and the second in 2025. This investment will increase Toyota's total stake in Joby to $894 million.
Investors can gain exposure to the stock via Trust for Professional Managers ActivePassive International Equity ETF (NYSE:APIE) and Avantis International Large Cap Value ETF (NYSE:AVIV).
Price Action: Toyota shares are down 1.39% at $177.99 premarket at the last check Thursday.
- Toyota Doubles Down On Joby Aviation: $500M Investment Powers US Electric Air Taxi Certification, Production