Honda And Nissan Forge Alliance To Boost Electric Car Tech

Zinger Key Points
  • Honda and Nissan collaborate on electric car technology.
  • Pressure mounts on legacy automakers amidst EV market shifts.

Nissan Motor Co., Ltd NSANY and Honda Motor Co., Ltd HMC have entered into a memorandum of understanding for a strategic partnership in vehicle electrification and intelligence.

The scope of the feasibility study includes automotive software platforms, core components related to EVs, and complementary products.

The companies will channelize their efforts to strengthen environmental and electrification technologies to achieve carbon neutrality and zero traffic-accident fatalities.

"It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges," said President and CEO Makoto Uchida.

Japanese automakers face tough competition in China from local newcomers, leading to production cutbacks, according to a report from Bloomberg.

Honda and Nissan consider reducing production capacity amidst declining sales, contrasting with BYD Company BYDDY expansion plans in Japan.

Honda aims for carbon neutrality by 2050, planning to sell only electrified cars by 2040. Nissan targets carbon neutrality across its product life cycle by fiscal year 2050.

HMC Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Honda Motor Co, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Honda Motor Co, the 200-day moving average sits at $32.23, according to Benzinga Pro, which is below the current price of $35.96. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: HMC shares closed higher by 0.06% at $7.58 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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