Honda Motor (HMC) will partner as planned with General Motors (GM) on its first two electric vehicles and then shift course to manufacture its own EVs later this decade. Honda stock edged higher in a buy zone Monday.
Meanwhile, Stellantis (STLA), another relative laggard picking up the pace on electric vehicles, will hold an EV day next week.
GM will build Honda’s first two fully electric SUVs, which go on sale in 2024. On Monday, Honda said the Honda-branded, GM-made SUV will be called the Prologue.
But after those two EVs, Honda will build EVs using its own electric architecture, the Japanese auto giant said in a news release Monday.
Honda acknowledged Monday that it has not been perceived as an EV leader. But the Japanese auto giant touted its “long history” building gas-electric hybrid vehicles, which it plans to leverage in the shift to all-electric vehicles.
In April, Honda set out plans to only sell fully electric vehicles by 2040. Global automakers are shifting away from gas- and diesel-powered vehicles, as investors look for the next Tesla (TSLA). And countries around the world have set tough targets for zero-emission vehicles.
Honda and GM began partnering on EVs and hydrogen fuel-cell vehicles in 2018.
Honda Stock In Buy Zone
Shares of Honda Motor rose 0.7% to 32.70 in Monday’s stock market trading, after rebounding off the 50-day line last week. Honda stock is in range from a 32.02 buy point initially cleared on June 2.
GM stock lost 2.75%, back to its 50-day line. Tesla stock gained 2.6%. Ford (F) fell 1.5%.
Stellantis EV Day
On Monday, Stellantis announced it will hold an EV Day on July 8.
Stellantis emerged from a $52 billion merger between Fiat Chrysler and Peugeot parent PSA Group. In January, the company revealed plans to offer a slew of all-electric and plug-in hybrid electric vehicles through 2025, including 10 new models in 2021.
Stellantis stock dipped 0.9% to 20.16 on Monday. STLA is consolidating, finding support at its 21-day exponential moving average.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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