Toyota Motor Corporation TM has applied for approval to construct a new manufacturing facility in Texas, reflecting growing momentum in the United States as President Donald Trump continues urging automakers to expand domestic production, per Bloomberg.
Per a filing submitted to the Texas Comptroller of Public Accounts, the proposed project in Bexar County would involve an investment of roughly $2 billion.
The expansion plan, which includes a new assembly line adjacent to Toyota’s current truck manufacturing plant, highlights a broader shift among global automakers as they adjust production strategies in response to evolving U.S. trade policies and changing consumer preferences. The initiative would further strengthen Toyota’s manufacturing presence in the United States, its largest market, at a time when several competitors are scaling back operations.
Per a spokesperson from Toyota’s U.S. operations, the company has no additional announcements at present, while reiterating its long-standing production philosophy of building vehicles where they are sold and sourcing components where they are manufactured.
Per the filing, the construction is expected to start this year, with completion targeted for 2029 and operations scheduled to commence in 2030.
The Texas project, internally referred to as “Project Orca,” centers on expanding Toyota’s U.S. production capacity by adding a new assembly line. The company currently manufactures the Tundra and Sequoia trucks at its San Antonio facility, which produced nearly 200,000 vehicles in 2025.
In November, Toyota announced plans to invest up to $10 billion in U.S.-based initiatives to increase production in response to Trump’s 15% tariffs on vehicles and auto parts imported from Japan. The investment strategy includes a $912 million commitment to expand hybrid vehicle and component production across five states.
In fiscal 2026, Toyota’s consolidated vehicle sales rose 2.5% to nearly 9.6 million units. For fiscal 2027, the company expects Toyota and Lexus sales of roughly 10.5 million units compared to 10.48 million units in fiscal 2026, as production ramps for models refreshed in fiscal 2026. Electrified vehicle sales are forecast at nearly 5.96 million units, up from 4.75 million units in fiscal 2025, with HEVs expected to exceed 5 million for the first time.
TM Zacks Rank & Key Picks
Toyota currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELHY, Garrett Motion Inc. GTX and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 76.1% and 36.3%, respectively. The EPS estimate for 2026 and has improved 34 cents and 42 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.7% and 20.4%, respectively. The EPS estimate for 2026 has improved 12 cents over the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2026 sales and earnings implies year-over-year growth of 6.6% and 28.2%, respectively. The EPS estimate for 2026 and 2027 has improved 42 cents and 22 cents, respectively, over the past 30 days.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Garrett Motion Inc. (GTX): Free Stock Analysis Report
PHINIA Inc. (PHIN): Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELHY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).