Honda Motor Co., Ltd. (HMC) saw its stock fall more than 1% on Wednesday after the company announced it would stop production of the Acura ZDX electric vehicle in the United States.
Trading at $33.49, the stock declined 1.15% by the market close, reflecting investor concern over Honda’s pivot in its EV strategy amid a challenging market for electric vehicles.
The drop comes amid broader industry uncertainty as automakers recalibrate their EV portfolios to respond to fluctuating consumer demand and market conditions. Honda’s announcement underscores the pressures traditional automakers face in scaling EV production efficiently.
The decision affects the Acura ZDX, an all-electric crossover produced in partnership with General Motors at GM’s Spring Hill Assembly plant in Tennessee. Production for the 2026 model year had been slated to start this month, but Honda confirmed it has canceled all future production.
Honda cited current market conditions for EVs as the primary reason for the move, emphasizing the need to align its product portfolio with customer demand and long-term strategic goals.
Since its launch last year, the Acura ZDX sold approximately 19,000 units in the U.S., with over 11,000 units sold through August 2025.
NEWS: Honda has cancelled all U.S. production of its Acura ZDX EV, citing market conditions for EVs.
Video of the SUV below: pic.twitter.com/ukds8eITqP
— Sawyer Merritt (@SawyerMerritt) September 24, 2025
Despite the production halt, Honda assured that its relationship with GM remains strong. A GM spokesperson noted that Honda’s decision was based solely on market demand, not on the quality of GM’s production or workforce. The Spring Hill facility will maintain its employment plans, with no immediate layoffs announced as a result of the shift.
The collaboration between Honda and GM has been instrumental in Honda’s U.S. EV expansion. While the ZDX will no longer be produced, other joint ventures, including the Honda Prologue EV built in Mexico, will continue without interruption.
Honda also used the announcement to highlight its broader EV strategy. The company plans to launch the all-electric Acura RSX at its Ohio EV Hub in the second half of 2026. In addition, hybrid-electric Acura models are currently in development, signaling that Honda is pivoting to a more diversified approach to electrification.
“ZDX has played a valuable role for the Acura brand, and will provide a foundation we will build on next year with the arrival of the all-electric RSX, as well as with hybrid-electric Acura models now in development,”A Honda spokesperson stated,
This focus on new models and strategic planning is intended to better align with evolving customer needs and market conditions.
Investors are now closely monitoring Honda’s next moves in the EV market. While the stock drop reflects immediate market concerns, the company’s long-term plans for electrification, including upcoming launches and continued GM partnerships, may provide a roadmap for future growth. Analysts suggest that Honda’s ability to adjust production in response to market realities is a sign of strategic flexibility, even as short-term stock volatility continues.
Honda’s stock performance in the coming months will likely be influenced by the reception of its upcoming electric and hybrid models, as well as broader consumer sentiment toward EV adoption in the U.S.
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