HomeIndustriesToyota and Subaru Stocks Plunge Amid Electric Cars Recall

Toyota and Subaru Stocks Plunge Amid Electric Cars Recall

Toyota Motors’ venture into all-electric vehicles is off to a bad start. The automaker recalled 2,700 units of its bZ4X SUV model after discovering that some cars had a risk of their wheels coming off. As a result, Toyota’s stock lost 0.7 percent in value.

Subaru Corp., in which Toyota has a 20 percent stake, had it even worse after being forced to recall its first EV model Solterra. Around 2,600 Solterras, a model with many similarities with bZ4X, have been taken off the market. In the immediate aftermath, Subaru’s stock lost close to five percent of its value on Friday.

Detailing the issue with bZ4X, Toyota indicated that only a handful of units were affected by the issue. The problem, fortunately, didn’t cause any accidents, and the automaker is expecting to fix it in the near future.

Toyota was a pioneer in the electric car movement with its hybrid Prius model, but the company has struggled to make a mark on the EV market so far. The major issues for the company have been the global shortage of materials, which caused production delays, as well as slow urgency to put a bigger focus on all-electric cars. The recent recalls certainly don’t help, and it will be interesting to see how Toyota (and Subaru) bounce back after it.

PCE Inflation Report Threatens to Delay Fed Rate Cuts

Investors are bracing for the release of the Personal Consumption Expenditures (PCE) report on Thursday, with markets concerned that hotter-than-expected inflation data could further...

U.S. Futures Decline Ahead of Inflation Report

Futures on the New York Stock Exchange declined on Wednesday ahead of a crucial inflation report that is expected to provide insight into the...

Stocks Hold Steady Ahead of Inflation Report

U.S. equities remained largely muted on Tuesday after reaching all-time highs as investors awaited the release of a crucial inflation report. The PCE index,...