Japan pushes Tesla to invest in Nissan after Honda talks fail
Japan courts Tesla for Nissan investment
A high-level Japanese group, including a former prime minister, has proposed a plan for Tesla to invest in Nissan following the collapse of its merger talks with Honda.
The proposal suggests Tesla could become a strategic investor, acquiring Nissan’s U.S. factories. However, key figures involved have denied any formal role, and analysts question Tesla’s interest in legacy automaker infrastructure, reports Reuters.
Key Takeaways
- A Japanese group, including ex-PM Yoshihide Suga, has proposed Tesla invest in Nissan and acquire its U.S. factories.
- Analysts argue that Tesla’s production model does not align with Nissan’s existing infrastructure, casting doubt on the feasibility of a deal.
- Following the Financial Times report, Nissan shares jumped 9.6% as investors reacted to the possibility of a Tesla partnership.
Japanese Officials Reportedly Push for Tesla-Nissan Partnership
According to a report from the Financial Times, a high-profile Japanese group, including former Tesla board member Hiromichi Mizuno and ex-Prime Minister Yoshihide Suga, has developed a plan to encourage Tesla to invest in Nissan. The proposal suggests Tesla could acquire Nissan’s U.S. manufacturing plants, potentially giving the EV giant more capacity in North America.
Tesla Inc (TSLA) share price dynamics (2021 - Feb 2025) Source: TradingView
The initiative comes after Nissan’s $60 billion merger talks with Honda collapsed last week. Nissan has since expressed interest in finding new strategic partners to strengthen its position in the rapidly evolving automotive market.
Doubts Over Tesla’s Interest in Nissan’s Factories
Despite the reports, Mizuno publicly denied any involvement in the proposal, stating that he had "absolutely no involvement" and that Tesla likely has no interest in Nissan’s existing plants. He noted that Tesla’s manufacturing approach relies on custom-built factories designed for its own production needs, making Nissan’s infrastructure less appealing.
Senior equity analyst Matt Britzman from Hargreaves Lansdown echoed these concerns, arguing that Tesla’s “secret weapon” is its uniquely optimized factories. “There’s little reason for Tesla to invest in aging infrastructure that doesn’t align with its production model,” Britzman said.Additionally, Suga’s office stated it was unaware of any formal efforts to encourage Tesla’s investment in Nissan, further fueling uncertainty around the proposal’s credibility.
Nissan Shares Surge Amid Speculation
Despite the uncertainty, Nissan’s stock surged 9.6% after the Financial Times report, as investors speculated about the potential partnership. Market reactions suggest that even unverified reports of Tesla’s involvement are enough to drive optimism around Nissan’s future prospects.
Meanwhile, a separate Nikkei report indicated that Taiwan’s Foxconn has proposed a different alliance involving Honda, Nissan, and Mitsubishi Motors. Nissan board members have also reportedly discussed Tesla and Apple as possible strategic investors, though no formal negotiations have been confirmed.
As Nissan regroups following its failed merger talks with Honda, speculation continues over potential new partnerships. While reports suggest Tesla may be a candidate, denials from key figures and doubts from analysts cast uncertainty over the feasibility of such a deal. Despite this, investor enthusiasm remains strong, highlighting the market’s confidence in Nissan’s ability to secure a transformative partnership in the near future.
Reminder, Tesla Inc. has overtaken Audi, one of Germany’s premier luxury car brands, in global sales for 2024, despite delivering fewer vehicles than analysts had projected.
