Will Truck Prices Drop by Up to 40 Million Won? Truck Stocks Surge Amid Tax Repeal Hopes

Shares of PACCAR Inc. (NASDAQ: PCAR) jumped 5.05% on June 2, closing at $115. The company’s market capitalization rose by roughly $3.2 billion to $60.5 billion, and trading volume reached 2.02 million shares.

The rally followed reports that bipartisan U.S. senators proposed repealing the 12% federal excise tax on heavy trucks, fueling expectations that per-unit prices could fall by $15,000 to $30,000. PACCAR had already reinforced its strong profitability in its truck, parts and financial services segments in its first-quarter results released in late April, reporting revenue of $6.78 billion and net income of $605 million, in line with market estimates.

Headquartered in Bellevue, Washington, PACCAR manufactures medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF brands, and provides parts, leasing and financing services. Founded in 1905, it is one of the world’s largest producers of medium- and heavy-duty trucks and is led by CEO Preston Feight.