Toyota shares drop 18% in 2026 but show 38% upside on tariff reset and EV growth potential.

Toyota's stock has fallen 18.27% in 2026 due to U.S. tariffs hurting North American profits and weaker global sales. Despite this, the stock trades at $174.95 with a 24/7 Wall St. price target of $240.94, indicating a 37.72% upside. The company is boosting electric vehicle sales, with a strong roadmap for growth and profitability improvements. Risks include ongoing tariff impacts and competition from BYD, but current valuation and cash flow support a bullish outlook over the next 12-18 months.