Honda Is Pivoting. Should Investors Buy Now?

For the first time in its history as a publicly traded company, Honda Motor (HMC +0.44%) posted a full-year loss. The Japanese automaker took a massive $10 billion hit to its electric vehicle business. Excluding the EV segment, Honda is still profitable. Its executives were quick to point out this fact. Today's Change(0.44%) $0.11Current Price$25.32 Honda is now pivoting and plans to roll out 15 new hybrid models by early 2030. The company canceled several EV models and even walked back its climate pledge. Instead of reaching combustion-free status by 2040, Honda now aims to be carbon neutral by 2050. While Honda is largely abandoning its EV plans, it still faces other hardships. Honda is discontinuing sales in South Korea, closing a plant in China, and delaying its autonomous-driving ambitions. The good news is that Honda is disciplined and knows how to steer to get back on track. The Japan-based company is refocusing its efforts on its strengths in a leaner, more efficient manner. This strategy shift should be great for long-term investors. Image source: Getty Images. As for the stock, Honda hasn't done much to impress over the past five years. Shares are down more than 13% in that time frame. Honda inventors should remain patient. This speed bump arguably marks the beginning of the company's turnaround. There's money to be made with hybrids. The hybrid car market could reach $457 billion by 2030, growing at a compound annual rate of 11%, according to Grand View Research. Honda learned a tough lesson last year but is now moving in the right direction toward long-term success in a highly competitive automotive industry. Patience is key here for investors. The stock is reasonably priced, but the strategic pivot may need some time to take hold.Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.