Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Honda выглядит как недорогой, но не сильный по качеству бизнеса автопроизводитель с заметным дисконтом к отрасли по большинству мультипликаторов. P/E, P/S и особенно P/B существенно ниже медианы, что обычно поддерживает идею недооценки, однако такой дисконт здесь частично объясняется слабой рентабельностью и ухудшением операционной динамики. ROE, ROA, ROI и доходность на материальный капитал находятся значительно ниже отраслевых ориентиров и при этом снижаются по сравнению с более ранними периодами, что ограничивает потенциал переоценки. Валовая маржа и операционная маржа тоже ниже медианы, а EBITDA и операционная прибыль заметно просели год к году, что говорит о давлении на эффективность и структуру затрат. Чистая прибыль и операционный доход сократились относительно прошлогодних уровней, поэтому текущая прибыльность не подтверждает более высокий рыночный мультипликатор. С другой стороны, выручка остаётся крупной и в целом держится на высоком уровне, а чистая маржа пока выглядит стабильнее, чем валовая и операционная, что смягчает негативный вывод. Баланс не выглядит напряжённым: quick ratio выше отрасли, current ratio близок к норме, а денежные средства остаются значительными. Но долговая нагрузка выше медианы и долгосрочный долг растёт, поэтому финансовый риск для акционера немного повышен. Дивидендная доходность улучшилась и остаётся привлекательной, что поддерживает инвестиционный кейс для доходного инвестора. В сумме фундаментал скорее оправдывает осторожный дисконт к текущему прогнозу, чем его повышение, потому что дешёвая оценка сочетается с ослаблением доходности капитала и ухудшением прибыли. Для инвестора это история про умеренную защиту вниз за счёт низких мультипликаторов и дивидендов, но без убедительного сигнала на заметное расширение оценки.

Honda Motor Company, Ltd.

Honda торгуется с сильным дисконтом к отрасли, но слабая рентабельность, падение прибыли и рост долга ограничивают потенциал переоценки.

(RTTNews) - Honda Motor Co., Ltd. (HMC) is recalling more than 880,000 SUVs and pickup trucks in the U.S. due to a rear suspension problem that could raise the risk of a crash.
The recall impacts a total of 880,514 vehicles, including certain Honda Pilot SUVs, Honda Ridgeline pickups, Honda Passport SUVs, and Acura MDX luxury SUVs.
According to the U.S. National Highway Traffic Safety Administration, the rear subframe that supports the vehicle's rear suspension may corrode over time, especially in areas where road salt is commonly used during winter.
As corrosion progresses, it can weaken the mounting area of the rear subframe, which might lead to fractures and even failure of the part. Drivers might notice strange noises, vibrations from the rear suspension, or changes in how the vehicle handles before the issue gets worse.
This recall mainly affects vehicles sold or registered in states that use a lot of road salt, like New York, Pennsylvania, Michigan, Illinois, Ohio, Massachusetts, New Jersey, Wisconsin, Minnesota, along with a few other states in the northeast and Midwest.
Honda dealers will check the affected vehicles and install a reinforcement kit for free. If they find any corrosion damage, they'll repair or replace the rear subframe components at no cost to the owners.
As for now, Honda has stated that they haven't received any reports of injuries or deaths in the U.S. related to this defect as of May 28.
This recall comes on the heels of another one announced last month, which involved nearly 99,000 vehicles due to a potential airbag deployment concern.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Recalls More Than 880,000 Vehicles Over Rear Suspension Corrosion Risk

Key Points
Honda posted a full-year loss for the first time since going public in 1957.
The automaker is pivoting to hybrids and walking back ambitious climate initiatives.
For the first time in its history as a publicly traded company, Honda Motor (NYSE: HMC) posted a full-year loss. The Japanese automaker took a massive $10 billion hit to its electric vehicle business.
Excluding the EV segment, Honda is still profitable. Its executives were quick to point out this fact.
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Honda is now pivoting and plans to roll out 15 new hybrid models by early 2030. The company canceled several EV models and even walked back its climate pledge. Instead of reaching combustion-free status by 2040, Honda now aims to be carbon neutral by 2050.
While Honda is largely abandoning its EV plans, it still faces other hardships. Honda is discontinuing sales in South Korea, closing a plant in China, and delaying its autonomous-driving ambitions.
The good news is that Honda is disciplined and knows how to steer to get back on track. The Japan-based company is refocusing its efforts on its strengths in a leaner, more efficient manner. This strategy shift should be great for long-term investors.
As for the stock, Honda hasn't done much to impress over the past five years. Shares are down more than 13% in that time frame.
Honda inventors should remain patient. This speed bump arguably marks the beginning of the company's turnaround. There's money to be made with hybrids. The hybrid car market could reach $457 billion by 2030, growing at a compound annual rate of 11%, according to Grand View Research.
Honda learned a tough lesson last year but is now moving in the right direction toward long-term success in a highly competitive automotive industry. Patience is key here for investors. The stock is reasonably priced, but the strategic pivot may need some time to take hold.
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Honda Is Pivoting. Should Investors Buy Now?

Honda HMC incurred a loss of $4.24 per share for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of 18 cents per share. Quarterly revenues totaled $37.1 billion, which rose from the year-ago period’s figure of $35.2 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Segmental Highlights
For the three-month period, which ended on March 31, 2026, revenues from the Automobile segment increased 4.6% year over year to ¥3.73 trillion ($23.8 billion). The segment registered an operating loss of ¥1.25 trillion ($7.96 billion) compared with an operating loss of ¥158.7 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥1.09 trillion ($6.94 billion), which increased 17.9% year over year. The unit’s operating profit came in at ¥185.3 billion ($1.18 billion), up 14.6% year over year.
Revenues from the Financial Services segment totaled ¥975 billion ($6.21 billion), up 14.8% year over year. The unit’s operating profit totaled ¥57.5 billion ($366.4 million), down 18.6% year over year.
Revenues from Power Product and Other Businesses came in at ¥129.7 billion ($826.4 million), up 14.5% year over year. The segment reported operating income of ¥4.1 billion (26.1 million) against the operating loss of ¥68 billion incurred in the same period last year.
Financials & FY27 View
Consolidated cash and cash equivalents were ¥4.53 trillion ($28.5 billion) as of March 31, 2026. Long-term debt was around ¥301.4 billion ($1.9 billion) as of March 31, 2026.
Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.71 million units and 3.59 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.
For fiscal 2027, Honda forecasts revenues of ¥23.15 trillion, implying a rise of 6.2% year over year. Operating profit is envisioned at ¥500 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥500 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.
HMC currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
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Honda's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

(RTTNews) - Honda Motor Co. (HMC) posted a loss for the year attributable to owners of the parent of 423.9 billion yen, compared to profit of 835.8 billion yen, last year. Loss per share was 106.06 yen compared to profit of 178.93 yen. Operating loss was 414.3 billion yen, compared to profit of 1.2 trillion yen, due mainly to the impact of EV-related losses as well as tariff impacts, which was partially offset by increased profit attributable to price and cost impacts.
Consolidated sales revenue for the fiscal year ended March 31, 2026 increased by 0.5%, to 21.8 trillion yen from last year, due mainly to increased sales revenue in Motorcycle business, which was partially offset by decreased sales revenue in Automobile business as well as negative foreign currency translation effects.
For the fiscal year ending March 31, 2027, Honda projects: sales revenue of 23.15 trillion yen; operating profit of 500.0 billion yen; and profit for the year attributable to owners of the parent of 260.0 billion yen.
Shares of Honda Motor are trading at 1,323 yen, up 4.01%.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Motor Posts Loss In FY

Key Points
Mary Barra's nearly $30 million compensation in 2025 tops close Detroit rivals.
GM's targets and incentives are designed to align management and shareholder interests long term.
The automaker is performing well in nearly any metric, and its stock price has soared compared to mainstream rivals.
Like it or not, CEO pay in America continues to rise in comparison to the average employee. It's viewed as necessary to attract top talent in a highly competitive industry and to align shareholders' interests with management in creating long-term value through better product development, increasing market share, operational improvements to grow margins, and others.
Just recently news hit the markets that General Motors' (NYSE: GM) CEO, Mary Barra, was the highest-paid Big Three CEO, and one simple graph shows exactly why.
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How much are we talking?
Mary Barra earned $29.9 million last year, which was a total compensation package worth a modest 1.4% more than the prior year, according to a company filing. The modest increase was largely due to base salary and stock awards being nearly offset by nonequity incentive plan compensation falling 26% down to almost $5 million. Barra's base salary has been consistent at $2.1 million for a few years, and last year her stock awards jumped 11% to $21.6 million, the bulk of the compensation package.
Devin Wenig, chairman of GM's compensation committee, wrote in the SEC filing:
Together, the targets we set for our 2025 compensation program were intended to incentivize management to navigate uncertainty, continue to make great products that our customers love, and drive improved profitability. We believe that these clear and challenging targets rewarded management for delivering results that are fully aligned with our shareholder interests.
The one graph that can justify Barra's pay is a simple one, but it shows the progress GM has made in navigating uncertain trade policy, tariff changes, volatile electric vehicle (EV) demand, and many other speed bumps along the way.
GM has drastically outperformed rivals over the past three years, nearly tripling its closest competitor and trivializing Ford Motor Company's modest gain and/or Stellantis' 50% drop in value. It even greatly outpaced gains at Ferrari, which by many accounts remains one of the top auto investments out there.
Comparison check
Barra's compensation topped that of her closest rival, Ford Motor Company's CEO Jim Farley. Farley's total compensation jumped 11% last year to just over $27.5 million, which was the highest payout he has received since taking over the automaker in October 2020.
It's fair to note that Farley's payout increased at a time Ford reached only 64% of its earnings targets and rather reached the maximum of 200% of quality goals related to newer vehicles (with zero to three months in service).
That could have some investors scratching their heads, as Ford's number of recalls last year set historical records, and quality has been a consistent problem over recent years, even hindering earnings once in a while due to spikes in warranty costs.
For context, Ford obliterated the previous all-time record for the number of recalls, with 153 such campaigns, a record investors would rather leave in the dust. Ford's recalls covered nearly 13 million Ford and Lincoln vehicles, which was drastically larger than Toyota's and Stellantis' 3.2 million and 2.8 million vehicles, respectively. According to Ford, however, the company's internal metrics indicate the automaker is making significant progress on newer vehicles while mounting recalls are from older vehicles in the national fleet.
High-end CEO talent gets paid the big bucks; that much is clear. There are many ways to justify it, but it all comes down to aligning shareholder interests with management. GM has been performing incredibly well in just about any metric and has returned immense value with tens of billions in share buybacks in recent years. Investors might not like the high compensation packages, or perhaps it's a nonfactor, but GM's stock performance speaks for itself on the matter.
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Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Ferrari. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Big Bucks Are Flowing at GM, and 1 Simple Graph Shows Why It's Worth Every Penny

U.S. legacy automaker Ford F kicked off 2026 on a weak footing, and the numbers tell a clear story. The legacy automaker reported first-quarter deliveries of 457,315 vehicles, down 9% year over year. That decline reflects a broader slowdown across the auto industry as economic uncertainty, affordability concerns, elevated vehicle prices and high borrowing costs weigh on demand. Ford’s arch rival General Motors GM and Japan’s auto biggie Honda HMC also saw their U.S. deliveries fall around 10% and 4%, respectively.
Ford’s challenges were particularly visible across key segments. Its electric vehicle (EV) business took a sharp hit, with sales plunging nearly 70% year over year to just 6,860 units, following the withdrawal of federal tax incentives and persistently high EV price tags. Meanwhile, its crown jewel — the F-Series trucks — saw volumes drop 16% to 159,901 units. Management partly attributed this to production disruptions linked to last year’s aluminum plant fires, which constrained supply. Even hybrids, which had been a strong growth driver, saw sales fall nearly 20%. With the average new vehicle price hovering near $50,000 and financing costs still elevated, affordability remains a key headwind.
With Ford shares down 12% year to date, the market is clearly factoring in near-term headwinds. But the key question now is— does this represent a buy on dip opportunity, or is it better to stay on the sidelines, or even exit? Let’s take a closer look.
F Lags GM, Outperforms Industry & HMC
Image Source: Zacks Investment Research
Challenges Grappling Ford
Ford is dealing with a series of operational and cost pressures that could keep near-term performance under strain. A key issue is the supply disruption caused by a fire at a Novelis aluminum plant. The impact already led to roughly $2 billion in losses last year, with another $1 billion expected this year. On top of that, Ford may incur $1.5–$2 billion in additional costs as it sources aluminum from alternative suppliers, adding further pressure on margins.
The company is also in the middle of reshaping its EV strategy, which isn’t coming cheap. It expects about $7 billion in special charges over the next two years, largely tied to strategy shifts and asset sales, with most of the cash impact likely in 2026.
Tariffs remain another drag. After a $2 billion hit last year, Ford still expects around $1 billion in tariff-related costs going forward, keeping cost pressures elevated.
Not All Doom & Gloom for Ford
Despite the near-term pressures, Ford still has a few strong levers working in its favor. Its commercial business, Ford Pro, continues to be a standout performer. Backed by solid order books and strong demand for Super Duty trucks, the segment is delivering healthy double-digit EBIT margins. Growth isn’t just coming from vehicles—software and services are playing a bigger role, with paid subscriptions rising 30% last year and profits from these streams expected to grow further this year.
Beyond autos, Ford is also building a presence in energy. Ford Energy is emerging as a strategic growth platform, with plans to invest $1.5 billion in 2026 and scale battery storage capacity significantly by 2027. This move not only diversifies revenues but also taps into a fast-growing, higher-margin market.
Financially, Ford remains on solid ground. It ended 2025 with about $50 billion in liquidity, including $29 billion in cash, giving it flexibility to navigate challenges while continuing to invest. Add to that a dividend yield of around 5%, and the stock still offers some income appeal.
Ford Valuation & Estimates Check
From a valuation perspective, Ford currently looks more attractive, especially on a price-to-sales basis. Ford trades at 0.26 forward sales, the same as Honda but better than General Motors’ 0.35. Ford currently carries a Value Score of A.
Ford P/S Vs. GM & HMC
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Ford’s 2026 sales and EPS implies year-over-year growth of 1% and 40%, respectively. The consensus mark for 2027 sales suggests a 1% year-over-year decline, while the EPS estimates point to 21% growth from projected 2026 levels. See how the EPS estimates have moved over the past 60 days.
Image Source: Zacks Investment Research
Final Take
Ford is clearly navigating a tough phase, with weak deliveries, rising costs and multiple near-term headwinds limiting upside. While valuation looks inexpensive and businesses like Ford Pro and Energy offer long-term promise, the path to a meaningful recovery remains uneven and backloaded.
This doesn’t seem like a compelling entry point for new investors yet. However, the company’s strong liquidity, income appeal and strategic pivots provide enough cushion to avoid a bearish call. For existing investors, staying put makes sense, but new money is better off waiting for clearer signs of demand recovery.
Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ford Q1 Deliveries Weak, Shares Down 12% YTD: Buy, Hold or Sell?

Volvo VLVLY is discontinuing the EX30 subcompact electric SUV in the United States after only two model years. The automaker will continue selling the vehicle in global markets, but production for the United States will end after the 2026 model year. Tariffs and a slowing U.S. EV market are key contributing factors.
The EX30 arrived in the United States for the 2025 model year as Volvo’s entry-level electric SUV and later added a Cross-Country trim for 2026. Volvo confirmed that 2026 will be the final model year for the EX30 in the United States, although the vehicle will remain available in other markets such as Canada and Mexico.
The EX30 was initially produced in China but was later supplied to the United States from Volvo’s factory in Ghent, Belgium, to avoid tariffs on Chinese-built EVs. Subsequent import tariffs, including a 25% tax on imported vehicles, increased cost pressures. The removal of federal EV tax credits reduced consumer incentives, leading to a sharp decline in monthly sales after the incentives expired.
Volvo sold roughly 5,400 EX30 units in 2025, a figure that trailed competitors, including Hyundai’s Ioniq 5 and Tesla’s Model 3, both of which recorded significantly higher sales during the same period.
The EX30 joins a growing list of electric vehicles being withdrawn as tariffs, production costs and shifting market conditions prompt automakers to revise their strategies.
Volvo’s decision aligns with broader industry developments, as several automakers reassess electric-vehicle programs amid regulatory changes and evolving consumer demand. Since automakers are no longer required to prioritize electric vehicle production, many companies are shifting attention toward gasoline and hybrid models that are more cost-effective and align with consumer demand.
VLVLY’s Zacks Rank
Volvo stock currently carries a Zacks Rank #3 (Hold).
Automakers Scale Back EV Plans Amid Weak Demand
Several major automakers have recently taken steps that reflect this broader industry shift, indicating shifts in priorities across the sector.
Honda Motor HMC announced that it will restructure its EV business and cancel three planned battery-electric models for the U.S. market. The move comes amid declining EV demand, as consumers shift to hybrid vehicles and recent policy changes reduce tax credits. The company stated that scaling back EV plans and writing down certain China operations could cost up to $15.7 billion. It expects its first annual loss in nearly 70 years, mainly due to supplier compensation costs.
General Motors GM will no longer produce electric vehicles at its Michigan Orion plant and will instead shift the facility to internal combustion engine models, including the Cadillac Escalade, Chevrolet Silverado and GMC Sierra pickups. Production is expected to begin in early 2027. The plant has remained idle since 2023 and was originally intended for electric versions of these vehicles. Plans were delayed multiple times due to weaker-than-expected demand for EVs in recent years. GM reported $7.2 billion in special charges in the fourth quarter of 2025, including $6 billion related to its EV strategy reset costs.
Stellantis STLA canceled its fully electric Ram pickup planned for a 2025 North America debut, citing slower demand for electric trucks. Instead, it will introduce a range-extended hybrid version, the Ram 1500 REV. The company revised its electrification strategy after a €22.2 billion ($26.5 billion) write-down tied to EV programs, reflecting scaled-back investments and adjusted product plans amid weaker-than-expected adoption and shifting market conditions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Volvo Scraps EX30 U.S. Sales Amid Broader EV Strategy Reset

Key Points
The conflict in Iran will impact global auto demand, but in different ways.
With a larger presence in the Middle East, Chinese automakers will likely feel the most impact.
Detroit automakers are more protected from that disruption, but could face challenges due to rising oil prices.
While there's never really a good time for a conflict like the war in Iran, as far as the automotive industry goes, it's awful timing. Consider that four automakers alone, Honda (NYSE: HMC), Ford Motor Company (NYSE: F), General Motors (NYSE: GM), and Stellantis (NYSE: STLA) have combined for a restructuring bill that is nearing $70 billion. The restructuring was designed to pivot away from electric vehicle (EV) strategies until the market was ready. Now, however, the Iran conflict is bringing up many questions for investors. Let's dive into a few, including how this will impact EV sales.
Will demand be dented?
The simple answer is yes, but exactly how, why, and where get much more complicated. Automotive sales in Iran will obviously be directly impacted, and regionally, it will be extremely challenging to distribute inventory and regulate supply chains amid the turmoil. Automakers with a strong presence in the Middle East will be most impacted, which currently means investors should be concerned primarily if they own Chinese automakers, which are expanding internationally, including in the Middle East, at a rapid pace.
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Domestic automakers in Detroit and elsewhere have a much smaller presence in the Middle East, if any, and are fairly protected from direct impacts. However, about one-fifth of the world's oil supply travels through the Strait of Hormuz, and Iranian officials have said they will not allow ships through the passage.
In the short term, this will mean higher gasoline prices, which will begin to push consumers to EVs and/or hybrids. Edmunds, an automotive research company, has already acknowledged that consumer research on its website for EVs and hybrids has picked up since March 2, days after strikes were launched on Iran. As gasoline prices only began rising sharply late last week, the impact is still in its early stages.
Thankfully for auto investors, it would take a prolonged period of conflict-driven gasoline price increases to truly change overall vehicle volume and demand. If the past can offer any insight, investors might look to June 2022, when Russia's invasion of Ukraine sent gasoline prices to a national average of $5.01 per gallon. That year, sales of highly profitable full-size pickups and SUVs declined 7.3% for the year, according to Automotive News.
One reason demand and sales mix will be resistant to change is simply that new-vehicle prices have continued to rise to new heights. Buying a vehicle because of a current event like the conflict in Iran means making a $50,000 vehicle decision due to a $5 gas dilemma. In the short and medium terms, consumers are much more likely to change their habits rather than make big-ticket purchases.
What it all means
Some investors are quick to predict the EV market could be reinvigorated fast, due in part to the Iran conflict, but the chances of a significant change in the near term are small. In 2022, Cox Automotive completed a study that found prices at roughly $6 per gallon to be the magical number that began pushing shoppers to consider switching to a hybrid or EV. Sustained higher gasoline prices absolutely do have impact; however, the odds are that these circumstances will push consumers toward more EV research and education, rather than purchase decisions.
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Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Iran Conflict Could Capsize Auto Sales Globally. Which Stocks Are Safe?

(RTTNews) - Honda Motor Co. [HMC] has announced the cancellation of three planned electric vehicle projects for the U.S. market, contributing to the company's expected first annual loss since its public listing in 1957. This move highlights the growing pressure on traditional automakers as demand for electric vehicles slows in the U.S.
The company cites weaker-than-expected EV market expansion, reduced incentives, easing fossil fuel regulations, and tariff-related pressure on gasoline and hybrid profitability as factors behind this decision.
The shift away from these EV projects could cost Honda approximately 2.5 trillion yen or $15.7 billion over time, with a projected net loss of up to 630 billion yen or $3.94 billion for the current fiscal year.
Honda's announcement adds to a growing list of major automakers, including Ford Motor Company, General Motors, and Stellantis, that have taken multibillion-dollar charges related to delayed or canceled electric vehicle investments. Meanwhile, EV-focused startups like Rivian Automotive and Lucid Group are moving forward with more affordable product offerings.
Rivian recently opened orders for its R2 midsize SUV, starting at $57,990 for a performance version, with lower-priced trims scheduled for 2027. Lucid has also unveiled details of its upcoming Cosmos model, expected to cost less than $50,000 and offer 200 miles of range in just 14 minutes of charging.
Lucid plans to begin production of the Cosmos in Saudi Arabia this year, before ramping up U.S. manufacturing at its Arizona plant. Rivian's R2 is expected to be built in Normal, Illinois, and later supported by a future plant in Georgia.
Despite the weaker EV momentum in the U.S., several global automakers, including Toyota Motor Corporation, BMW, Volkswagen, and Hyundai Motor Company, continue to expand their electric offerings, particularly in Europe, Asia, and the Middle East.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Legacy Carmakers Retreat As EV Startups Launch Lower-Cost Models

A few years back, electric vehicles (EV) were one of the hottest themes in investing. Tesla’s success paved the way for many EV pure plays to go public, while legacy automakers committed billions of dollars to shift gears toward electric mobility. It was seen as the next big transformation in autos that would drive future revenue and earnings growth.
But the hype has faded. EVs have proved to be a costly transition, adoption has slowed, and things haven’t quite played out the way many had anticipated. In the United States, the EV market has struggled to hold momentum, partly due to weaker government support. The Trump administration rolled back incentives and regulations meant to boost EV sales. A key tax credit— worth up to $7,500 for qualifying EVs and plug-in hybrids— expired last September, removing an important demand driver. This has weakened the near-term case for EVs, even though they are still widely considered to be the future of transportation.
In response, many auto giants such as Ford F, General Motors GM and Stellantis STLA have reconsidered their EV strategies and taken write-off charges on related investments that no longer make business sense. The latest casualty is Honda HMC, which announced yesterday that it expects to take charges of up to $16 billion in the fiscal year ending March 31, 2026, as it pivots away from EVs.
Interestingly, Honda’s closest peer appears to have largely avoided this situation. That is the Japanese auto titan Toyota TM. The company did not go all in on EVs when the rest of the industry was aggressively investing in the technology, a decision that drew criticism at the time. But that cautious approach now seems to be paying off, as Toyota has not announced any EV write-downs so far.
Surprisingly though, the same automaker is now preparing to double down on EVs at a time when demand remains uncertain. Before discussing its strategy, let’s briefly look at how Ford, General Motors, Stellantis and Honda ended up taking write-offs on their EV bets.
$70B EV Reality Check for F, GM, STLA and HMC
Ford is moving away from its plans to manufacture large EVs. Instead of rolling out expensive, capital-heavy EVs into a reluctant market, Ford will now focus on profitable hybrids and internal combustion vehicles, while narrowing its EV efforts to smaller, lower-cost models. At the center of this shift is Ford’s new Universal EV Platform. Ford’s first vehicle built on the platform will be a midsize electric pickup. Notably, the company has even discontinued the fully electric version of its best-selling F-150 pickup. Ford announced $19.5 billion in EV-reset related charges.
General Motors also responded to slower-than-expected EV demand by selling its stake in the Ultium Cells Lansing plant and pivoting some assembly capacity from EVs back to internal combustion engine (ICE) vehicles. The company took $7.6 billion in charges in the second half of 2025 to reduce EV capacity.
Last month, Stellantis confirmed that it incurred around $25 billion in losses related to EV restructuring in the second half of 2025.Its RAM brand discontinued its planned all-electric pickup. The company is repositioning its North American strategy around conventional hybrids and extended-range electric vehicles (EREVs), which offer electric driving with longer range and reduce dependence on charging infrastructure.
Honda, as mentioned earlier, will be taking a massive hit of roughly $16 billion and is now projecting a full-year loss of 340-570 billion yen in fiscal 2026. It has canceled its highly anticipated 0 Series SUV and sedan just months before planned production, shifting its focus toward developing more competitive hybrid models while expanding its motorcycle business to strengthen profitability.
With that, the cumulative EV-restructuring losses for these four automakers come to roughly $70 billion.
Toyota Expands EV Push As Rivals Retreat
For years, Toyota prioritized hybrids over fully electric vehicles and was often viewed as one of the slowest legacy automakers to embrace BEV technology. Until the start of this year, the brand had only one EV offering in the U.S. market — the Toyota bZ.
That is now changing. Toyota is expanding its battery-electric lineup in the United States, with additions such as the Toyota Highlander EV, Toyota bZ Woodland and Toyota C???HR EV, per Autoblog. The new lineup spans multiple segments— from compact SUVs to more lifestyle-oriented crossovers— helping the company target a broader group of buyers.
Toyota views this expansion as a natural next step after the success of its hybrid strategy. Hybrid models have grown rapidly. That large base of hybrid customers could eventually become a pipeline of EV buyers.
The company is also trying to manage costs more efficiently. The company is also looking to control EV costs by leveraging its global operations and sourcing batteries from its new North Carolina plant. The Highlander EV will be Toyota’s first three-row electric SUV and also the first Toyota EV assembled in the United States.
At the same time, Toyota is rolling out updated EV models and offering pricing incentives to attract buyers now that the $7,500 federal EV tax credit is no longer available. With longer range, quicker charging and aggressive pricing, Toyota is betting its new EVs can appeal to mainstream buyers at a time when much of the industry is stepping back.
Last Word
In hindsight, Toyota’s reluctance to rush into EVs has saved it from the costly reset now facing several rivals. By holding back earlier, the company now appears to be in a better position to expand its EV push. Whether Toyota’s timing proves right remains to be seen, as EV demand is uneven and policy support uncertain. But if demand picks up again, that positioning could give Toyota an advantage as the next phase of the EV transition unfolds.
TM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	HMC	Industry	HMC	Industry	Volume, $
Yesterday 24.0 - 24.1	18.16	2.85	7.75	2.04	35.45M
Week 23.9 - 24.8	18.56	9.30	4.15	2.77	141.30M
Month 23.6 - 25.4	17.14	13.30	8.78	6.20	702.58M
3 Months 23.2 - 31.9	-10.38	5.58	18.42	12.99	1.89B
6 Months 23.2 - 32.9	-5.36	7.35	22.03	18.59	3.40B
Year 23.2 - 34.9	-8.06	20.17	30.59	27.33	6.10B
3 years 23.2 - 37.9	1.69	68.71	49.80	62.83	17.67B
5 years 21.4 - 37.9	-6.33	97.54	60.32	90.88	29.26B
All time 17.4 - 44.6	72.41	250.17	—	—	25.77B

Honda Motor Company, Ltd.

Price and volatility history

Risk ratios