Why Investors Slammed the Brakes on Toyota Stock Today

Investors in auto companies always fear news of product recalls, since the subsequent hit to a manufacturer's reputation can ding the price of its stock. That's what happened on Friday with Japanese automaker Toyota Motor (NYSE: TM), as a market sell-off followed the announcement of its latest recall.By market close today, the company's shares had lost 3.5% of their value; investors would have been better off simply tracking the S&P 500 index, which slipped by only 0.1%.This morning, the National Highway Traffic Safety Administration (NHTSA) published a press release on recent news that Toyota is recalling more than 42,000 2023 and 2024 Corolla Cross hybrids it sold in the ever-influential U.S. market. The concern is about a loss in power brake assist; in certain instances, this can lengthen the distance needed to come to a complete stop. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool