3. Honda Motor Co., Ltd. (NYSE:HMC)
Short Interest as % of Shares Outstanding: 0.13%
Number of Hedge Fund Holders: 12
Honda Motor Co., Ltd. (NYSE:HMC) is making impressive strides in its transition toward a more sustainable future, with a significant focus on electric and hybrid vehicles. The company’s dedication to electrification is evident in its expanding lineup of EVs and hybrid models. The Honda e, introduced in 2020, marks the company’s entry into the compact EV market, which caters to urban drivers with its efficient design.
Building on this momentum, the company released the e:N1, an electric SUV produced in Thailand starting in 2023. The e:N1 features a 68.8 kWh battery and delivers a power output of 201 horsepower. It aims to provide a substantial driving range and performance.
The company’s hybrid initiatives continue to advance with models like the Honda CR-V PHEV, which will be available in 2025. This plug-in hybrid offers an all-electric range of up to 50 miles and can be fully charged in under 2.5 hours, which reflects the company’s ongoing commitment to reducing emissions while providing practical solutions for drivers.
It is also preparing to launch the Honda N-VAN e: in 2024, a mini-electric vehicle tailored for both commercial and personal use in Japan, which addresses the growing demand for smaller, versatile electric options.
A major development for Honda (NYSE:HMC) is the introduction of the Honda 0 Series, set to debut globally in 2026, starting with the North American market. This series will showcase its innovative approach to electric vehicle design, focusing on the principles of “Thin, Light, and Wise.” The 0 Series will feature two key models: the Saloon, designed for improved aerodynamics and driving dynamics, and the Space-Hub, which offers a spacious interior with a unique face-to-face seating arrangement.
The company has set ambitious targets for its electric and fuel-cell vehicle sales. The company aims for EVs and FCEVs to make up 40% of its global sales by 2030, with an ultimate goal of achieving 100% zero-emission vehicle sales by 2040.
To support these goals, it plans to ramp up production to 2 million electric vehicles annually by 2030. In addition, the company is expanding its hybrid vehicle range, which will continue to play a crucial role during the transition period.
Honda (NYSE:HMC) is also investing heavily in its EV infrastructure. It has announced plans for an approximately USD$11 billion investment in Canada to build a comprehensive EV value chain, strengthening its supply system to meet future demand in North America. Furthermore, it is developing its own battery technologies, including solid-state batteries, which could further improve the performance and safety of its electric vehicles.
For the first quarter, the company reported a GAAP EPS of ¥81.81 (1 Yen = US$ 0.0068, as of September 2). It reported revenues of ¥5.4 trillion, a 16.9% increase year-over-year. Operating profit also saw a significant rise, increasing by ¥90.2 billion to reach ¥484.7 billion, compared to the same period last year.
The company’s aggressive push into electric and hybrid vehicles, coupled with its investments in infrastructure and technology, position it well for future growth. Its balanced approach between immediate hybrid solutions and long-term electric ambitions aligns with global trends toward sustainability and could drive significant value for investors. It is among our best EV stocks to buy according to short sellers.
In the second quarter, 12 hedge funds held positions in Honda (NYSE:HMC), worth $398.704 million. As of June 30, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $326.202 million.
