If you thought it couldn’t get worse for Toyota you thought wrong.
After a massive recall for faulty accelerator pedals, the driver of a 2008 Toyota Prius said his car uncontrollably accelerated to over 90 miles per hour on a California highway and that he couldn’t stop without the help of police.
To make matters that much worse, the driver said he had received a recall notice but when he took his car to the dealership he was told that his car was not on recall lists.
Fortunately, the driver, 61-year-old James Sikes, was not injured in the Monday incident.
Toyota, however, was likely harmed by the incident considerably, with events turning the spotlight on Toyota’s questionable safety record, once again.
The Fast Money traders often say, buy when the news seems the very worst, but is Toyota the exception to this rule?
I sold my shares of Toyota, says Karen Finerman. I see the stock as a value trap in the wake of these events.
I’m concerned that Toyota will have to slash prices so significantly to attract customers it could hurt Ford which will be forced to do the same to compete, muses Guy Adami.
