TLDR
- Toyota (TM) fell as much as 2.6% after-hours Monday after announcing a $3.6 billion expansion of its San Antonio, Texas manufacturing campus.
- The expansion will add a second vehicle assembly line and create 2,000 new U.S. jobs by 2030.
- Tacoma production will shift from Mexico to the Texas plant over approximately four years, nearly doubling the site’s capacity to 350,000 vehicles annually.
- The move is part of Toyota’s broader plan to invest up to $10 billion more than previously planned in U.S. manufacturing through 2030.
- Through the first half of 2026, Toyota’s U.S. sales rose 0.5% to 1.24 million vehicles, while rival GM’s fell 6.8% to 1.34 million.
Toyota Motor (TM) dropped as much as 2.6% in after-hours trading Monday after the company announced a $3.6 billion expansion of its San Antonio, Texas plant.
The investment will add a second vehicle assembly line to the facility and create around 2,000 new jobs by 2030.
The plant, which currently produces the Tundra and Sequoia, will also take on assembly of the Tacoma midsize pickup. That production is being moved from Toyota’s Baja California facility in Tijuana, Mexico.
The transition is expected to take about four years.
The expansion adds 2.5 million square feet to the campus, nearly doubling it from 2.7 million to around 5.2 million square feet. Annual production capacity will increase from roughly 200,000 vehicles to about 350,000.
“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.
Part of a Bigger U.S. Push
This announcement is part of Toyota’s plan to invest up to $10 billion more than previously expected in U.S. manufacturing through 2030.
The timing follows the Trump administration’s decision not to extend the current trilateral trade pact with Canada and Mexico, opting instead for annual reviews.
Toyota is not fully pulling out of Mexico. The company said it will maintain its Mexican operations and continue making Tacomas at its Guanajuato plant.
Since breaking ground in San Antonio in 2003, Toyota has now invested a total of $8.3 billion at the site. The local workforce will climb to about 6,000 workers, supported by 23 on-site suppliers.
Toyota directly employs around 48,000 people across 11 U.S. manufacturing plants. Its North Carolina plant began assembling automotive batteries for electrified vehicles in 2025.
Sales Closing in on GM
On the sales front, Toyota is narrowing the gap with General Motors in the U.S. market.
Through the first half of 2026, Toyota’s U.S. sales rose 0.5% to 1.24 million vehicles. GM’s sales fell 6.8% to 1.34 million over the same period.
Only one analyst has covered TM stock in the past three months. Dmitriy Pozdnyakov of Freedom Capital Markets holds a Buy rating with a $230 price target.
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