As Honda Motor Co.'s share price approaches its record high since listing, the stock has surged even after the company booked a ¥1.5 trillion loss following a review of its EV strategy. The market is focused on its decisions to pursue or withdraw.
Honda's share price is approaching its record high since listing. Six months after the company booked a ¥1.5 trillion loss and announced its first net loss following a review of its EV strategy, the stock has shown a strong recovery, and views are spreading that it has risen more than any other major automaker.
The Nikkei Average rebounded on the 16th, but the broader market had recorded a sharp decline after falling for 6 consecutive sessions through the 15th. Automotive stocks, by contrast, remained firm and have attracted attention as a driver of share-price gains.
The market has high expectations for Honda's dramatic change, and investors are focused on strategic choices such as shifting its business beyond EVs and strengthening growth areas. Attention is also focused on the outlook for earnings improvement and capital allocation.
Reports in Nikkei-affiliated media say that the company's share-price movements and the market's response continue to attract attention. Further disclosures and briefings are awaited for additional information on developments.