STORY: Honda posted its first annual loss in nearly 70 years as a listed company on Thursday.
It was hit by more than $9 billion in costs to restructure its electric-vehicle business.
And the firm also ended its long-term EV sales target.
Revealing its worst financial report since Honda listed on the stock market in 1957 underscores how risky an aggressive bet on EVs can be for a legacy automaker.
Honda CEO Toshihiro Mibe said Thursday the carmaker is scrapping its goal of having EVs make up a fifth of its new car sales in 2030.
As well as a target of a full shift to electric or fuel-cell vehicle sales by 2040.
Mibe said Honda will also indefinitely suspend its Canada EV project, an $11 billion investment plan to produce EVs and batteries.
However, shares briefly hit a two-month high before closing up 3.8% on Thursday.
Investors bought in after the auto giant pledged at least $5 billion in shareholder returns over three years.
The pledge shows Honda's reliance on its profitable motorcycle business to generate cash and support shareholder returns.
Its operating loss totalled $2.63 billion for the year ended March.
But the company still expects to return to profitability this year.
However, Honda warned rising material prices, including the impact of the Middle East conflict, would cause a near $2 billion hit to its operating profit in the current fiscal year.
