Although Toyota sought to stem the damage from President-elect Donald Trump’s Thursday tweet denouncing the construction of a new plant in Mexico, the Japanese automaker suffered a setback on Wall Street.
Trump posted Thursday that Toyota would pay a hefty “border tax” if it didn’t build the plant in the United States.
Back in September, Toyota announced that it would spend $150 million at the Baja plant to boost output of its Tacoma pickup truck. The company has also said it seeks to invest $1 billion in a new Corolla plant at Guanajuato that would produce 200,000 vehicles per year for sales throughout North America. The plant would employ 2,000 people.
Trump’s fingers had barely stopped sending the tweet when Wall Street felt its impact.
My new favorite thing is watching the stock charts of companies immediately after Trump tweets, here’s Toyota. https://twitter.com/realDonaldTrump/status/817071792711942145 …
Toyota shares began plummeting almost instantly, causing an initial drop of around $1.2 billion in value.
The stock price finished the day down 0.75 points, or 0.62 percent.
Experts expect the stock price will rebound over time, as happened before to Boeing when Trump tweeted criticism over the cost of the new Air Force One.