Honda Motor’s shares rose more than 7% despite the company reporting its first annual operating loss in nearly 70 years.

The automaker posted a $2.61 billion loss, driven by heavy EV restructuring costs, U.S. tariffs, and intense competition from Chinese electric vehicle makers.

Honda is scaling back some planned EV launches and expects its restructuring efforts to cost more than $9 billion as it adjusts its strategy.

Analysts say the stock gained because earnings guidance came in stronger than expected, though concerns remain about long-term EV losses and competitiveness, CNBC has reported.

Despite challenges, some analysts remain optimistic, citing potential recovery and a strategic shift toward growth markets like China and India.