Nissan Stock Increases on Unfounded Optimism That Tesla Might Be Interested in Collaborating With Them

      Nissan's abandoned merger with Honda has left investors scrambling to find a new financial ally for the struggling automaker, with some of the proposals surfacing from across the Pacific being quite absurd. While tech giant Foxconn has made at least one serious approach (which would reportedly involve a partnership including Honda and Mitsubishi), several smaller investor groups are suggesting some rather outlandish ideas, including one that involves Tesla. Even the usually reserved coverage from Reuters depicts a scene of complete disorder.

      One reported plan mentioned by the Financial Times involves Hiromichi Mizuno, a former Tesla board member, and ex-Japanese Prime Minister Yoshihide Suga, who, along with a former aide, are urging Tesla to acquire a stake in Nissan in the hope that Elon Musk might view Nissan as a chance to gain more manufacturing resources in the U.S. Suga’s office allegedly had no knowledge of this proposal, while Mizuno expressed doubt on X, stating that it is unlikely Tesla would be interested in Nissan's factories given Tesla’s unique factory design.

      Given Tesla's decreasing production volume and market share in the U.S., it seems improbable that the EV manufacturer would aim to expand its current manufacturing presence. Nevertheless, this line of reasoning did not prevent investors from boosting Nissan's stock by 9.6% in Tokyo at the end of trading on Friday following the Financial Times' report.

      Meanwhile, Foxconn has reportedly expressed its intention to invest in Nissan, whether in a passive or more aggressive manner, irrespective of the final arrangement. The tech manufacturing company has been suggested as a potential partner for Nissan from the outset, with its close relationship to Apple even bringing the U.S. tech giant’s name into discussions, despite no confirmed interest from Cupertino, especially since Apple has made clear its withdrawal from the automotive sector.

      More recently, sources have indicated that Foxconn aims to bring Honda back into talks, forming a group that would include itself, Honda, Nissan, and current Nissan partner Mitsubishi. Nissan previously informed Reuters that no official discussions on this matter have occurred at the management level. Any agreement that incorporates Honda would likely encounter the same obstacles that led to the failure of the initial proposal, although it has been reported that Honda might reconsider if Nissan’s CEO, Makoto Uchida, resigns.

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