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.

Honda is rethinking its playbook when it comes to electric vehicles and the software that powers them.Honda says the market for EVs isn't quite what was initially projected; instead, the automaker plans on bringing even more hybrid models to market—I am Soichiro's complete lack of surprise.