I don’t know how your Sunday is going… but Honda just threw a $4.5 billion middle finger at the idea that Trump is going to single-handedly kill Biden’s EV push. While some automakers are acting like a squirrel that just heard a twig snap (freezing in place, waiting to see if Trump actually bulldozes Biden’s electric dreams) Honda’s going full speed ahead. No hesitation. No looking back.

And they couldn’t care less about Trump’s pledge to axe the $7,500 EV tax credit either. While Ford and GM are freaking out to rework their EV strategies (because apparently setting billions of dollars on fire didn’t quite pan out), Honda’s dropping $1 billion to convert its Marysville Auto Plant into an EV mega-hub, plus another $3.5 billion on a battery plant in Ohio. If Trump somehow manages to kneecap federal EV incentives, Honda’s response is basically, “That’s cute. We’ll be over here making money regardless.”

Unlike Ford, which bet everything on going electric and is now backpedaling harder than Bill Clinton after the Monica scandal, Honda isn’t foolishly going all-in on EVs. They’re building for flexibility… meaning their Ohio plants will be able to produce gas cars, hybrids, and EVs all on the same assembly line. If EV demand spikes, great. If everyone suddenly decides they miss the smell of gasoline in the morning, Honda can just go back to hybrids or gas cars.

And then there’s the six 6,000-ton giga presses they’re bringing in… those massive die-casting machines that Tesla made famous. If you’ve never heard of them, just know that they’re able to crank out massive aluminum parts with fewer components, lower costs, and faster production times. It’s efficiency on overdrive, which is great news for profits (a win-win-win if you ask Michael Scott).

Oh, and that $3.5 billion battery plant they’re building in Jeffersonville, Ohio… guess what? That’ll supply all of Honda’s U.S. EVs while creating 2,200 new jobs… a detail that probably won’t get much airtime when politicians talk about how EVs are “killing jobs.”

(Source: The Columbus Dispatch)

Trump has been making the loudest possible noises about how he's going to torch Biden’s EV policies and send us all back to gas-powered bliss. But Honda’s strategy suggests they’re laughing at the idea that Trump can actually pull it off.

First off, killing the $7,500 EV tax credit isn’t as simple as waving an executive order around like the King of England. The incentives are buried deep in the U.S. tax code and the Clean Air Act… so any attempt to roll them back will take years of legal fights, congressional votes, and enough red tape to circumnavigate the earth (ok, I made that up).

Second, Honda isn’t stupid. They saw what happened to Ford and GM when they threw billions into EV production without a backup plan and watched their profits get absolutely annihilated. That’s why Honda’s Ohio plants are designed to switch between EVs, hybrids, and gas cars as needed. If full EV adoption stalls (which, let’s be honest, is possible), Honda can just crank out hybrids and keep making money.

And lastly, Honda has its sights set on 2040 and beyond. They’ve pledged to sell only zero-emission vehicles by 2040 and hit carbon neutrality by 2050… and whether Trump wants to fight that battle for a few years or not, Honda knows where the auto industry is headed.

With all this investment in EVs, hybrids, and next-gen manufacturing, Honda’s stock has been flying under the radar… which means there might actually be an opportunity here.For starters, Honda’s stock trades at a P/E ratio of around 8… which is stupid cheap compared to Tesla (P/E of 64) and even Ford (P/E of 11). Oh, and Honda has $20.2 billion in cash on hand. That’s a ton of financial firepower, especially compared to companies like Ford, which are still burning money trying to figure out how to make their EV division profitable.

And it’s nice to know it’s not just me noticing. Big banks are waking up to Honda’s potential. Goldman Sachs recently upgraded the stock, pointing to strong hybrid and EV demand, along with its ridiculously low valuation. Morningstar has also taken notice, calling Honda undervalued compared to its peers and highlighting its low-cost structure and strong balance sheet. Even J.P. Morgan is a believer that Honda’s hybrid flexibility is a major advantage.

So if you’re looking for a way to play the EV transition without investing in a crazy valued company like Tesla, Rivian, or Lucid, Honda might just be the smartest play on the board. They’re not bleeding cash like some of the all-electric startups, but they’re also not clinging to gas engines like an old man yelling at a Prius. Honda’s strategy is simple: build whatever the market wants and make sure they can pivot at a moment’s notice. They’re playing both sides of the field, and in business, that’s just smart.

So if Trump actually does try to kill the EV tax credit, will Honda panic? Not a chance. They’ve already placed their bets, and with $4.5 billion invested into their EV future, they’re moving forward… whether the government wants to help or not.

Your move, Donald.

Stock.News has positions in Tesla and Ford.