Tesla CEO Elon Musk appeared to downplay reports of Tesla’s interest in Nissan’s U.S. factories early on Friday after a report said that a Japanese group—which includes the country’s former prime minister—is planning to seek Tesla's investment in the struggling automaker just days after its merger talks with rival Honda collapsed.
Reports of Nissan courting Tesla's investment comes just days after the struggling carmaker's merger ... [+]
According to the Financial Times, which first reported the matter citing unnamed sources, former Tesla board member Hiro Mizuno is leading the plan, with backing from former Japanese Prime Minister Yoshihide Suga.
The report added that several of Nissan’s board members are aware of the plan, but the company is yet to comment publicly.
The group marshaling the plan is reportedly hoping to bring Tesla on board as a strategic investor in Nissan, as they believe the Elon Musk-led company wants to acquire the struggling Japanese carmaker’s manufacturing plants in the U.S.
Responding to a post on X citing the report, Musk responded saying Tesla’s factory “IS the product” and added “Cybercab production line is like nothing else in the automotive industry.”
It is unclear if this means Musk would be opposed to such a deal or if he is suggesting Nissan offering its U.S. factories may not be enough to draw his interest.
According to the FT report, the group hopes to bring on board a “consortium of investors” led by Tesla, with Apple supplier Foxconn joining as a minority investor.
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Nissan’s Tokyo-listed shares surged more than 12% in Friday afternoon trading after the report was published. The carmakers stock ended the day at $3.05 (JPY 459), nearly 9.5% up from the previous day.
Last week, Nissan and rival Honda ended talks on a merger announced in December. A sticking point that prevented the merger from going forward was a disagreement between the two companies over the structure of the deal. Honda wanted to alter the original plan—which sought to bring both automakers under a joint holding company—and instead bring Nissan on board as its subsidiary “through a share exchange” deal.
Foxconn, a key supplier for Apple, has expressed interest in acquiring a stake Nissan as part of its broader push to grow in the EV market. Earlier this month, the company’s Chair Young Liu told reporters that Foxconn is open to buying French car maker Renault’s stake in Nissan. Liu, however, noted that the company’s main goal is “cooperation” with the Japanese carmaker and not “acquisition.” According to the FT report, the overture towards Tesla is partly motivated by concerns about Nissan being taken over by a company based in a hostile foreign country.