Honda Falls After Warning of $15.7 Billion Charge on EV Downturn

Honda Motor Co. shares fell the most in almost a year after warning investors that it faces as much as ¥2.5 trillion ($15.7 billion) in charges and a historic annual loss, joining a growing list of global brands battered by the rapid unraveling of the electric vehicle transition.

The stock declined as much as 5.9% in early morning trading in Tokyo on Friday, its steepest drop since April of last year on an intraday basis. The carmaker will cancel the development and introduction of three EV models that had been planned for North America, and is forecasting ¥270 billion to ¥570 billion in operating losses for the fiscal year ending March.