NISSAN

Nissan is chasing Elon Musk

A movement of Japanese personalities wants to find a solution for Nissan and is courting Tesla so that it can be the Japanese automaker's lifeline.

According to the Financial Times, a high-ranking Japanese group has a new proposal to save Nissan, led by former Tesla board member Hiro Mizuno.

With him are also former Japanese Prime Minister Yoshihide Suga and his former advisor Hiroto Izumi, with knowledge of several Nissan board members.

What is known is that the group wants Tesla to invest in Nissan's electric cars and that the Japanese automaker's factories in the US be used by Elon Musk to expand its domestic production.

This would help Nissan to also produce more of its cars on American soil, thus complying with the current US government policy.

Nissan recently backed out of a $58 billion merger with Honda over a proposal from the company's Japanese rival to abandon its hybrid cars, in this case the e-Power system.

Taiwan's Foxconn, the famous iPhone manufacturer in Asia, then came forward with a proposal to help Nissan, but it seems that this will not solve the issue.

Foxconn wanted to buy Nissan's shares held by Renault, but the deal fell through and the Japanese company remains tied to the French company.

Meanwhile, Elon Musk is reportedly interested in traditional assembly lines to make his cars cheaper, as he has reportedly said that the Cybercab factory does not look anything like one in the automotive industry.

Nissan recently announced that it would cut global production and lay off at least 9,000 people, which is far less than the 35,000 proposed by Volkswagen in its financial recovery. 

What would the plan be?...The Japanese group behind Tesla’s investment plans in Nissan hopes the Elon Musk-led company will become a strategic investor, and believes the US company would be interested in acquiring Nissan’s US factories, according to the Financial Times.

The proposal is being led by former Tesla board member Hiromichi Mizuno, with the support of former Prime Minister Yoshihide Suga and his former aide Hiroto Izumi, the newspaper said, citing unnamed sources.

Suga’s office said it was not aware of a plan to encourage Tesla to invest in Nissan. Suga stepped down as prime minister in 2021 but remains in Japan’s House of Representatives, representing a constituency in Kanagawa prefecture, where Nissan is based.

In a post on X, Mizuno said he had “absolutely no involvement” in the plan cited in the Financial Times article. He said he doubted Tesla would be interested in Nissan’s plants, given the unique design of the U.S. automaker’s factories.

What do the parties quoted say?...Nissan declined to comment on the report and Tesla did not respond to requests for comment. Reuters could not immediately reach Izumi.

Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said there is no advantage for Tesla in investing in the infrastructure of an old automaker.

“Tesla’s secret weapon is the innovative way its factories are designed and optimized for its cars,” Britzman said, adding that the company has ample capacity at its existing plants.

Honda declined to comment on the Nikkei report.

Now, will Elon Musk embrace the Japanese group and have Tesla partner with Nissan, a long-established manufacturer?

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