Leading automotive company Toyota Motor Corp (NYSE: TM) reported May sales results that may have been hurt by ongoing Middle East tension, but there was good news for investors.
Toyota Victim of High Gas Prices
Many Americans are struggling with higher gas prices, which has led to increased demand for electric vehicles and hybrids, which was evident in Toyota's May sales data.
The automotive giant reported May sales of 834,279 units, down 7.2% year-over-year, marking a fourth straight month of year-over-year sales.
In North America, Toyota saw sales down 0.1% to 280,539 units, including a 0.6% decline in the U.S.
The company reported a 31.7% year-over-year decline in China to 102,299 units, with Europe sales down 0.3% for the month.
Toyota cited several reasons for weakness in various regions.
"A challenging market environment, including rising gasoline prices, continued, leading to a year-on-year decrease in sales," the company said, as reported by Electrek.
While the company saw overall sales fall for the month, the headline of higher gas prices also saw the company grow its electric vehicle sales in the month.
EV sales were up 170% year-over-year in May for Toyota, with 37,313 units sold. The company's year-to-date battery-powered vehicles (BEVs) sales are up 138% through May. BEVs account for only around 7% of the company's overall sales.
Middle East Impact on Toyota
In May, Toyota said the impact of the war in the Middle East was $4.3 billion in the first quarter and that the full-year impact could be around $24 billion.
The company's estimated operating profit drop of $24 billion related to the war represents a 22% year-over-year decline from an earlier full-year guidance figure.
Toyota Stock Price Action
Toyota stock is down 2% to $168.01 on Tuesday, versus a 52-week trading range of $166.10 to $248.90. Toyota stock is down 22.9% year-to-date in 2026.