The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into automobile company Honda (HMC) following reports of its vehicles’ engines not starting after idling. Some of the complaints include vehicles that had to be jump-started to get them going again.
Several complaints have been filed concerning the auto start-stop feature included in many Honda models, such as the Odyssey and Acura. An issue with the system seems to prevent it from starting the engine from idle, such as when the owner stops at a traffic light or sign. This could affect roughly 2.21 million Honda vehicles.
The NHTSA’s investigation comes after Honda put out a service call for the vehicles affected by the issue in 2023. The NHTSA says it has continued to receive complaints about the issue, even from owners who had the vehicle serviced by Honda.
Honda Stock Movement Today
HMC stock was down 5.13% as of Friday afternoon, building on its 4.4% drop year-to-date. The fall could be connected to the NHTSA’s investigation. It also likely comes ahead of President Donald Trump’s “Liberation Day” next week. The President intends to place a 25% tariff on auto imports after this.
Honda has also been through a rough patch recently, thanks to a failed merger with Nissan (NSANY). However, this was a bigger blow to NSANY, with the shares down 15.06% year-to-date.
Is HMC Stock a Buy, Sell, or Hold?
Turning to Wall Street, Honda stock lacks recent coverage from analysts. Instead, investors will note that it has a 72 Outperform score from TipRanks’ AI Stock Analysis tool. Strong revenue and profitability, a solid balance sheet, and undervaluation are key strengths of HMC stock. Other highlights include positive technical trends and a low P/E ratio.
