The Nissan-Honda partnership has collapsed after Nissan rejected Honda’s $58 billion merger offer, which some view as a blow to Honda’s dignity. Amid Nissan’s struggles, top Japanese politicians and business leaders are urging Tesla to invest in the automaker. The proposal is led by former Tesla director Hiromichi Mizuno and backed by former Japanese Prime Minister Yoshihide Suga, according to sources familiar with the matter.
Under this proposal, Tesla would become the primary investor in Nissan, while Foxconn would receive a minor stake—ensuring that Foxconn does not gain full control of the company.
Previously, Foxconn had expressed interest in acquiring Nissan. Terry Gou, Foxconn’s founder, even flew to France overnight to negotiate with Nissan’s major shareholder, Renault, in an attempt to buy out its 36% stake. If the deal had gone through, Foxconn would have become Nissan’s largest shareholder, securing a controlling interest. However, Nissan opposed the idea of falling under foreign ownership. Now, with talks with Honda collapsing, Nissan is once again exploring new options.
Currently, Nissan’s financial situation remains concerning. In the first three quarters of fiscal year 2025, the company burned through 506 billion yen. To mitigate its struggles, it has announced plans to cut global production capacity by 20%. In this context, securing Tesla as an investor is seen as a potential solution.
Nissan operates two major factories in the U.S., each with a production capacity of 1 million units per year, located in Tennessee and Mississippi. However, due to declining sales, Nissan produced only 525,000 vehicles in 2024. By bringing Tesla on board as a strategic investor, Nissan hopes to utilize its American factories to help Tesla expand its local production while also addressing potential tariff pressures from the U.S. government.
Despite these efforts, Tesla CEO Elon Musk appears uninterested in the proposal. He responded on X (formerly Twitter), stating, “Tesla’s factory is a product in itself, and the Cybercab production line is unique in the entire automotive industry.”
Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.
