A prominent Japanese group, featuring former Prime Minister Yoshihide Suga, has proposed that Elon Musk’s Tesla invest in Nissan, according to reports from the Financial Times. This initiative is spearheaded by former Tesla board member Hiro Izumi, with support from Suga and his former aide, Hiroto Izumi. The group believes that Tesla is interested in becoming a strategic investor in Nissan, particularly to gain access to the company’s operations in the United States.
This proposal follows the recent collapse of a $58 billion merger between Nissan and Honda, which raised concerns about the potential for Nissan to fall into foreign ownership. The new plan may involve a consortium of investors, with Tesla as the primary backer and Foxconn holding a minority stake to mitigate the risk of a complete takeover by the Taiwanese firm.
Discussions with Honda were initiated after Foxconn expressed interest in acquiring shares of Renault in 2024. Following the failed deal, Foxconn confirmed its desire to pursue Nissan to enhance its electric vehicle manufacturing capabilities. In recent weeks, Nissan has also begun seeking a strategic partner, with Tesla and Apple being mentioned as potential candidates by some board members.
Nissan, Japan’s third-largest automaker, has launched an emergency turnaround plan that includes laying off 9,000 employees after reporting a quarterly loss. Suga, who served as Prime Minister for just over a year before stepping down in 2021, remains active in politics and is a member of the lower house of parliament. He began his political career in Yokohama, the city where Nissan is headquartered.
In response to the report, Elon Musk commented on X, stating, “The Tesla factory IS the product. The Cybercab production line is like nothing else in the automotive industry.