Japan Seeks Tesla Investment to Secure Nissan After Honda Deal Collapse

HIGHLIGHTS:

• A Japanese group, including ex-PM Yoshihide Suga, proposes Tesla as a Nissan investor.
• Nissan shares surged 11% following reports of Tesla investment interest.
• Proposal suggests Tesla acquiring Nissan’s U.S. manufacturing plants.
• Apple was also considered as a strategic investor but did not comment.
• Nissan CEO Makoto Uchida denied any management-level discussions with Foxconn.

Recent reports stated that a Japanese group, including former Prime Minister Yoshihide Suga, plans to propose Tesla as an investor after Nissan's $60 billion merger talks with Honda collapsed last week leading to an 11% surge in Nissan shares.

In reaction, Nissan announced its intentions to pursue new partnerships. A high-level Japanese group, including former Prime Minister Yoshihide Suga and ex-Tesla board member Hiro Mizuno, has proposed an alternative plan to secure Nissan's future. Suga's office denied knowledge of any initiative to encourage Tesla's investment in Nissan. Formerly prime minister in 2021, Suga is a lower-house member from Kanagawa, Nissan's home-ken.

The initiative involves courting Tesla, headed by Elon Musk, to invest in Nissan. The proposed deal entails Tesla's acquisition of Nissan's plants in the U.S. Nissan rejected the report, while Tesla did not respond.

Some board members also suggested Apple as a strategic investor, but Apple declined to comment. Foxconn from Taiwan is a potential contender among the new partners that Nissan is open to co-investing with. Last week, Nissan CEO Makoto Uchida claimed there had been no discussion with Foxconn at the management level.