Honda expects its first annual loss in decades due to electric vehicle costs

Honda has warned it will post its first annual net loss since it became a publicly traded company in the 1950s. The carmaker said it expects a loss of up to 690 billion yen (about $15.7 billion to $16 billion), largely due to a massive writedown related to its electric vehicle business.

Honda's shares fell nearly 6% following the announcement. The company is rethinking its electric vehicle strategy, and this large financial charge reflects the costs associated with that shift.