Hyundai Motor (HYMTF) (HYMLF) is preparing to announce a $20 billion investment in the U.S. later today. White House officials have confirmed the South Korean automobile manufacturer’s intention to announce a U.S. investment. This will likely happen this afternoon with President Donald Trump joining Hyundai Chairman Euisun Chung for the announcement.
The White House also confirmed that this $20 billion investment from Hyundai will include a $5 billion investment in a Louisiana steel plant. Investors will likely learn more about the timeline of this and the other uses of the $20 billion investment during today’s announcement.
Hyundai Wants to Avoid Trade War Woes
Hyundai’s decision to invest $20 billion in the U.S. and open a steel factory is likely a result of the company’s desire to avoid trade war troubles. President Trump has placed 25% tariffs on steel imports to boost U.S. production. The $5 billion steel factory is one way for Hyundai to avoid those tariffs.
President Trump has also spoken about placing tariffs on foreign automakers. Yet again, this is part of his plan to protect U.S. interests and bolster production in the country. If Hyundai sticks to its $20 billion commitment, it would be another sign of the positive effects Trump’s trade war could have on the U.S. economy.
Is Hyundai Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s not much analyst coverage of Hyundai stock. Instead, traders might weigh its recent earnings data before making an investment. Unfortunately, that doesn’t make a strong case for an investment in the company, with it missing EPS estimates in five of the last eight quarters. However, its revenue has consistently come in above Wall Street’s expectations.
