A high-profile Japanese group, including former Prime Minister Yoshihide Suga, has proposed that Tesla invest in Nissan following the collapse of Nissan’s merger talks with Honda.
According to the Financial Times, the group believes Tesla could become a strategic investor, particularly as it may be interested in acquiring Nissan’s U.S. manufacturing facilities.
Uncertainty Over Tesla’s Interest
Former Tesla board member Hiromichi Mizuno, who was reportedly involved in the proposal, denied any connection to the plan. In a social media post, Mizuno stated:
“I have absolutely no involvement in what was reported in the FT article and doubt if Tesla has any interest at all in Nissan factories given Tesla’s unique factory design.”
Some analysts also question Tesla’s motivation for such an acquisition. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, commented:
“Tesla’s secret weapon is the novel way its factories have been designed and optimized for its cars. There is little value in acquiring infrastructure from a legacy carmaker.”
Broader Industry Developments
Meanwhile, a separate report from Nikkei suggests that Taiwanese electronics giant Foxconn has proposed a partnership with Honda, with the ultimate goal of creating a four-way alliance that includes Nissan and Mitsubishi Motors.
Nissan and Honda recently ended their discussions to form a $60 billion automotive alliance, prompting Nissan to explore new partnerships.
Market and Political Considerations
Nissan shares rose 9.6% following reports of potential Tesla involvement. Analysts speculate that acquiring Nissan’s U.S. plants could align with former President Trump’s proposed tariffs on auto imports, which could make domestic manufacturing more attractive.
Tesla, which ended 2024 with $36.56 billion in cash reserves, has significant financial flexibility for acquisitions. However, the company has historically shown little interest in acquiring existing automakers.
Both Nissan and Tesla declined to comment on the reports, leaving the industry speculating on whether Tesla will make a move or continue focusing on its independent growth strategy.