A high-level Japanese initiative, supported by former prime minister Yoshihide Suga, former Tesla board member Hiro Mizuno, and Suga’s former aide Hiroto Izumi, is hoping to draw Tesla into investing in the struggling carmaker Nissan. According to FT, the group’s proposal is being developed in the wake of Nissan’s recent collapse of merger talks with Honda, aiming to secure a strategic investment from Tesla. They believe that Tesla could acquire Nissan’s US plants, which would help the electric vehicle (EV) giant boost its domestic production capabilities, particularly in light of US tariff threats from former president Donald Trump.
The move to approach Tesla comes after Nissan ended discussions with Honda on a $58 billion merger, raising concerns about the company’s future and the possibility of foreign takeovers. Taiwanese tech giant Foxconn, as well as private equity firms and activists, have expressed interest in acquiring a stake in Nissan. The proposal envisions Tesla as the largest investor in a potential consortium, though it also includes the possibility of a minority stake for Foxconn to prevent a full takeover by the Apple supplier, which could raise national security concerns for Japan, as noted by FT.
Nissan’s recent financial struggles, including a quarterly loss and a restructuring plan involving job cuts, have intensified the need for a strategic partner. The company, which has seen a decline in production at its US plants, is seeking ways to reverse its declining fortunes. According to sources familiar with the matter, Tesla and Apple were identified as potential partners in Nissan’s search for a tech-focused investor.
Tesla, with a market capitalization of $1.1 trillion, is not typically known for investing in car manufacturers, but the company has shown interest in expanding its presence in the US market. In addition to a growing focus on autonomous driving and robotics, Tesla is looking to increase production in the US to mitigate the impact of tariffs. Nissan’s underutilized plants in Tennessee and Mississippi could be a key asset in this strategy, as the company works to cut production capacity and improve its financial performance.
