Honda expects first annual loss in decades due to major EV strategy shift

Honda announced it expects to post its first annual net loss since it became a publicly traded company in the 1950s. The automaker warned of a massive financial charge, reported as up to 690 billion yen or about $15.7 billion, related to reassessing its electric vehicle plans.

This charge stems from Honda's decision to scrap some of its EV models and rethink its overall EV strategy. The company also stated it will pay suppliers as much as $10 billion related to the canceled vehicle programs. Honda's share price fell more than 6% following the announcement.