If there was one thing that could be said for electric vehicle stocks, it’s that the market wasn’t exactly short on competition. Legacy automakers, new upstarts, and a host of Chinese models have been making a play for the market for some time. Now, one more legacy automaker has entered the fray, and it’s none other than Honda Motor Company (NYSE:HMC). The market was happy to see it, and Honda stock was up nearly 2% in Wednesday afternoon’s trading.
Honda brought two new cars with it, dubbed the 0 Series when it went to the Consumer Electronics Show (CES) event in Las Vegas this week. Honda had previously tried to develop an EV for the United States market but backed out of a deal to do just that with General Motors (NYSE:GM), which has since gone on to make its own. At the time, Honda cited a “challenging business environment” as the reason to get out, but apparently believes things have changed enough to make getting in worthwhile. Honda is showing off two concept cars, the Space Hub and the Saloon, which will go into production in 2026.
A Focus on Better Aerodynamics
A closer look at the two new vehicles in the 0 Series reveals they’re at least sort of what their names imply. The Saloon is a “sleek, sedan-like concept,” and the Space Hub is a “boxier van-esque concept.” Both of them are designed to draw focus to Honda’s overall approach to EV development, which is to get off of heavier, thicker designs and instead focus on better aerodynamics. This makes some sense; wind resistance is, after all, harder on fuel consumption, whether it comes from a gas tank or a battery, so Honda’s play might make for a better overall vehicle.
Is Honda a Good Stock to Buy?
A look at the past five trading days for HMC stock highlights the level of impact today’s news had on it. Indeed, shares jumped almost 1.9% at the time of writing. As a result, investors are now up 0.96% during this timeframe.
