Toyota Shares Crippled by Industry Challenges

By Douglas A. McIntyre Updated Dec 26, 7:24AM EST · Published Dec 25, 4:05PM EST

Toyota Shares Crippled by Industry Challenges — © Toyota Prius 004 (CC BY 2.0) by Rutger van der Maar

Early in the year, Toyota Motor Corp. (NYSE: TM | TM Price Prediction) stock was the darling of the car industry. The world’s largest manufacturer did not make a massive bet on electric vehicles (EVs). Instead, it pushed production and sales of hybrids. In the meantime, the billion-dollar EV bets by Ford Motor Co. (NYSE: F), Volkswagen, and other global car companies were hitting their bottom lines.

Toyota’s stock is still doing better than the sector’s weakest companies. Shares are down 1% for the year. Ford’s are off 38%. However, the market’s perception of General Motors Co. (NYSE: GM) is better. The stock of the number one U.S. car company is up 49% in 2024.

Toyota’s recent problems revolve around its U.S. and China business. These are the two largest car markets in the world. In the third quarter, Toyota’s North American sales dropped by 20% in September to 162,595. Ironically, EV sales were part of the problem.

Toyota is suffering the same fate as other foreign car companies in China. Toyota’s China production dropped by 17% from April through September. It blamed local manufacturers led by EV giant BYD.

Toyota’s hybrid strategy may still be helping the company. However, it has too many headwinds in other parts of its business.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.