Nissan Motor Company (NSANY) and Honda Motor Company (NYSE:HMC) entered into an agreement to explore a potential partnership to develop EVs (electric vehicles) and focus on smart mobility. Following the joint disclosure, the stock of Nissan closed over 3.7% higher, while Honda shares increased by about 2.3%.
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The companies will conduct a feasibility study covering various aspects, including automotive software platforms, key components relevant to EVs, and complementary products.
This collaboration is a strategic move to remain competitive in the EV space, particularly against dominant players from China and industry leaders such as Tesla (NASDAQ:TSLA). Nissan CEO Makoto Uchida said in a press briefing that emerging players are rapidly gaining ground in the EV space. He emphasized the urgency of adapting to the evolving landscape and the need to innovate and adapt to remain competitive.
What Is the Prediction for Nissan?
Nissan stock is up about 12% in one year. Improved unit sales and optimized pricing are driving its revenue and operating profit. However, intense competition and macro uncertainty remain a drag.
Nissan stock sports a Smart Score of 2, implying that it will likely underperform the broader equity market.
Is HMC a Buy, Sell, or Hold?
Honda Motor stock has gained nearly 43% over the past year, reflecting continued growth in production and sales in Japan and international markets. However, amid macro uncertainty and an elevated interest rate environment, HMC stock has a Smart Score of 6, implying that it will likely perform in line with market averages.
