<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Honda posted a full-year loss for the first time since going public in 1957.</li><li>The automaker is pivoting to hybrids and walking back ambitious climate initiatives.</li><li>10 stocks we like better than Honda Motor ›</li></ul>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. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »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.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDE2OS9oeWJyaWQtY2Fycy5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDE2OS9oeWJyaWQtY2Fycy5qcGcmdz03MDA"/>Image source: Getty Images. 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.<h2>Should you buy stock in Honda Motor right now?</h2> Before you buy stock in Honda Motor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Honda Motor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. </div></div>

Honda Motor has reported its first full-year loss since going public in 1957, primarily due to a $10 billion hit in its electric vehicle sector. The company is pivoting towards hybrids, planning to launch 15 new models by 2030, while scaling back its climate goals to achieve carbon neutrality by 2050. Despite challenges, including plant closures and market exits, Honda remains profitable outside the EV segment. Investors are advised to be patient as the company adjusts its strategy, although it is not currently recommended as a top stock pick.

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Honda Is Pivoting. Should Investors Buy Now?