Just over a week after recalling more than one million vehicles in the U.S., Japanese carmaker Toyota (TM) is now pulling back another 127,000 vehicles. The U.S. auto safety regulator confirmed this on Thursday.
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The latest recall is due to the possibility of machining debris, likely not cleared from the engine of its Tundra pickups and Lexus LX luxury SUVs with manufacturing dates between 2022 and 2024. Toyota’s Lexus GX mid-size luxury SUVs with model year 2024 are also being recalled for the same reason.
Toyota Recalls Pile Up
The confirmation by the U.S. National Highway Traffic Safety Administration on Thursday comes several days after Toyota similarly announced the recall. The automobile manufacturer noted that the defect could cause the engines to knock or refuse to start, which could lead to a crash while driving at high speed.
Toyota said it plans to notify vehicle owners about the issue by early January next year. The latest recall adds to a list of pullbacks the automotive business has been forced to issue this year.
Toyota Boosts U.S. Investment.
Despite its recall challenges, Toyota has continued to expand its sales in the U.S. and across the world. However, its global operating profit tumbled more than 70% during its recently ended second quarter, mainly due to higher expenses related to engine certification, increased labor costs, and tariffs.
Yet, Toyota is ramping up its U.S. investment. On Wednesday, the carmaker revealed it is committing an additional investment of up to $10 billion to its business in the U.S.
Ted Ogawa, the company’s president and chief executive officer for North America, disclosed the investment plan while launching the company’s first battery plant outside of Japan. Since entering the U.S. almost seven decades ago, Toyota has invested almost $60 billion in the country.
The new plant in Liberty, North Carolina, is Toyota’s eleventh plant in the U.S. and costs about $14 billion, the automaker said.
Is TM Stock a Buy?
According to TipRanks’ AI Stock Analyst Spark, Toyota’s shares are worth buying. All of the analysts’ AI models, including OpenAI, Gemini, Perplexity AI, and DeepSeek, rate TM stock as Outperform, pointing to its strong financial position.
For example, Perplexity-SonarPro estimates an average TM price target of $235, which implies over 13% upside from the current trading level.
Read more about the AI stock analyst rating here.