Japanese Investors Propose Plan for Tesla to Invest in Nissan

Japanese car manufacturers Nissan Motor and Honda Motor have decided to abandon merger talks, which aimed to unite the two companies. This decision temporarily halts discussions that had raised expectations of creating a Japanese automotive giant.

One of the main disagreements arose from differences in the proposed integration structure. Honda suggested a stock exchange, which Nissan found unacceptable.

Following this breakdown, Nissan continues to seek a potential partner to secure its future. The company has shown interest in exploring new collaborations, including possible agreements with firms like Foxconn. Notably, Tesla, the automotive company led by Elon Musk, has emerged as a potential ally. Although it is not officially confirmed that Musk is personally considering an investment in Nissan, there is a proposal to attract Tesla as a strategic investor.

According to the Financial Times, a group of Japanese investors has devised a plan for Tesla to become an investor in Nissan. Following this report, Nissan's shares surged by 9.47% on the Tokyo Stock Exchange this Friday.

The proposal involves a consortium of investors, with Tesla as the main sponsor. It also includes the possibility for Musk's company to acquire Nissan's plants in the United States amidst the tariff threats posed by President Donald Trump.

The group is reportedly led by Hiro Mizuno, a former Tesla board member, and is supported by former Prime Minister Yoshihide Suga.

Nissan is seeking a lifeline after the formal end of its agreement with Honda Motor to merge the two brands into a single holding earlier this month. The company is facing financial difficulties and is undergoing a restructuring that includes a 20% reduction in global production and the layoff of around 9,000 workers worldwide by 2026.

Indeed, Nissan's shares have been in freefall on the Tokyo Stock Exchange, experiencing a 19% decline this year. Similarly, the manufacturer expects losses of nearly 500 million euros by the end of this fiscal year.

The fallout from the disagreement has been particularly severe for Nissan, which continues to suffer from declining sales volumes. This is putting pressure on the automaker to find financial support and navigate its current economic challenges.

On February 13, Nissan's CEO, Makoto Uchida, stated that it would be difficult to survive without relying on a partnership and expressed willingness to "talk to other potential partners."