HMC Honda Motor Co., Ltd. American Depositary Share, each representing three (3) shares of Common Stock : Bullish and Bearish Analyst Opinions

A significant charge of this magnitude will directly impact earnings and likely pressure the stock as the market digests the financial consequences of its strategic pivot.

Short Honda as the company is guiding for a significant full-year operating loss due to massive charges from a reassessment of its EV strategy.

The company's massive downward revision from a significant operating profit to a large operating loss signals a severe deterioration in its core business performance.

The company's guidance has swung from a substantial projected profit to a major loss for shareholders, indicating a direct and significant negative impact on equity value.

The company is explicitly guiding for losses due to a strategic failure in its EV program, signaling both immediate financial pain and a setback in a critical growth sector.

The company's forecast of extremely high operating costs and significant investment losses points to deep-seated operational and strategic issues that will pressure margins.

Shorting Honda based on the company's direct guidance for hundreds of billions of yen in extraordinary losses for its fiscal year 2026.

Shorting Honda as the company is publicly forecasting up to ¥2.5 trillion in costs and losses from its revised EV strategy, signaling severe financial impact.

"By the end of the seventies, you had Civics from Honda... The Japanese and German small cars really start to take off... American tastes really changed as people realized there was money to be saved." The speaker notes that US manufacturers recently pivoted *back* to big SUVs/trucks, calling it a "terrible moment" given the new oil spike. As gas prices rise, consumer demand will violently rotate back to fuel efficiency and hybrids. Toyota (TM) and Honda (HMC) are the historical and structural winners of this rotation, while US domestics (Ford/GM) are caught with the wrong inventory mix. Long Japanese automakers (TM/HMC) as a play on fuel efficiency and wallet-share shift. Trade tariffs or protectionist policies from the US administration blocking imports.

HONDA WILL START SELLING EV PRODUCED IN CHINA TO BUYERS IN JAPAN AS EARLY AS SPRING - NIKKEI

Honda is to import China-made EVs to bolster its Japanese lineup - Nikkei.

"Europe and Asia have a much bigger problem with energy than we do... Korean equities, Japanese equities got absolutely hammered... Japanese autos in particular led the weakness... they're all short energy." Japan and Korea are net energy importers. When Oil rises *and* the Dollar rises (the currency oil is priced in), their costs explode while their currencies devalue. This crushes margins for heavy manufacturers like Toyota (TM) and Honda (HMC) and hurts the broader indices (EWJ/EWY). Short exposure to Asian energy importers. A sudden drop in the US Dollar or a ceasefire reducing oil prices would reverse this pressure.