Musk Denies Tesla-Nissan Investment Rumors
Elon Musk, CEO of Tesla, has denied rumors suggesting that Tesla might invest in the struggling Japanese automaker Nissan. This denial came after a report indicated that a Japanese group was seeking to attract investments into Nissan, leading to a 9.5% surge in Nissan"s stock on Friday.
The report mentioned that former Japanese Prime Minister Yoshihide Suga was among those advocating for Tesla to become a strategic investor in Nissan, possibly in exchange for acquiring Nissan"s factories in the United States. However, Musk appeared to dismiss the idea outright. His comments followed Nissan"s shares closing at 458.80 yen in Tokyo, their highest level since January, during brief merger talks with Honda, Japan"s larger competitor.
In recent years, Nissan has faced significant challenges, including management turmoil and declining profitability, which have hindered its efforts to invest in electric vehicle technology. The report about Tesla"s potential investment proposal came after Nissan canceled merger talks with Honda earlier this month, following its rejection of the idea of becoming a subsidiary of the larger company.
The merger plans were initially driven by a desire to purchase Nissan shares from Taiwan"s Hon Hai Precision Industry, also known as Foxconn, which manufactures iPhones for Apple in China. Foxconn has ambitious plans to play a major role in global electric vehicle production. The Japanese newspaper Nikkei reported on Friday that Foxconn had contacted Honda regarding the possibility of forming a partnership.
The Tesla factory IS the product.
— Elon Musk (@elonmusk) February 21, 2025
The Cybercab production line is like nothing else in the automotive industry.
Meanwhile, the Financial Times reported that the proposed investment plan for Tesla was led by Suga, who served as Japan"s Prime Minister from 2020 to 2021, along with his former aide Hiroto Izumi and former Tesla board member Hiro Mizuno. The Financial Times noted that several Nissan board members were aware of the proposal.
Selling factories could be a logical move for Nissan, which is currently cutting 9,000 jobs worldwide as part of its restructuring efforts. Additionally, additional factories in the United States could benefit Tesla, especially given U.S. President Donald Trump"s apparent determination to impose tariffs on the automotive industry, despite his close relationship with Musk.