The company has a target to have battery-powered and fuel-cell vehicles make up all of its new car sales by 2040. Shares of Honda Motor ( HMC) traded flat in premarket action at $28.80 vs. the 52-week range of $23.41 to $37.90.

According to Nikkei, Honda plans to launch a smaller EV priced under $30,000 in the US as early as 2026. It will be made locally, starting with the batteries, to cut costs. The new EV is expected to be the entry-level model for its upcoming Honda 0 Series. It will be a cornerstone for Honda’s global expansion.

Honda is recalling nearly 295,000 Honda and Acura vehicles that could potentially suffer engine stalls or loss of power from faulty software.

Honda Pilot and 2021-2025 Acura TLX Type-S models. The NHTSA said a fuel-injection electronic control unit software error may lead to engine failure, increasing the risk of crashes or injuries. Why It Matters Stalling on a major road could lead to serious accidents or even death.

Honda will recall 294,612 vehicles in the U.S. to fix an issue that may cause engines to stall or suffer a loss of power, the National Highway Traffic Safety Administration said on Wednesday.