CATL, the world’s largest maker of electric-vehicle batteries, is expanding production, while Honda is cutting spending plans. Oddly, both stocks are up.

The Honda Motor Company announced Tuesday it will cut back on its previous investment plan for electric vehicle technology in response to its disappointment in the growth of the EV market.

Since late 2023, an EV slowdown is getting more pronounced in the US, with Tesla, the market leader with over half of all EV sales in that country, consistently reporting its lowest quarterly earnings in over two years.