Japan Considers Tesla Investment in Nissan Following Unsuccessful Honda Merger Talks

Japan is reportedly exploring a potential Tesla investment in Nissan following the collapse of Nissan-Honda merger talks, according to the Financial Times. A high-profile group, including former Prime Minister Yoshihide Suga, is leading the initiative, aiming to secure Tesla as a strategic investor in the struggling automaker.

Key Players Driving the Proposal

The proposal is spearheaded by Hiro Mizuno, a former Tesla board member, with backing from Suga and his former aide, Hiroto Izumi. The group believes that Tesla’s involvement could bolster Nissan’s position while expanding the EV giant’s manufacturing footprint in the U.S. amid rising tariff concerns.

Why Tesla's Investment in Nissan Matters

The move comes after Nissan rejected Honda’s $58 billion merger proposal, sparking concerns about a potential foreign takeover by companies like Taiwanese tech giant Foxconn. A Tesla investment could help Nissan retain control while boosting U.S. production.

Nissan currently operates two U.S. manufacturing plants in Tennessee and Mississippi, with a combined annual capacity of 1 million vehicles. However, in 2024, the plants produced only 525,000 units, leaving significant untapped potential that Tesla could leverage for expansion.

What’s Next?

While this proposal could reshape Tesla’s global supply chain strategy, neither Tesla, Elon Musk, Nissan, nor other stakeholders have officially confirmed discussions. However, if Tesla moves forward, the investment could strengthen Nissan’s U.S. presence while helping Tesla scale domestic EV production in response to trade pressures.

(Sources: ft.com, investing.com, ChatGPT)