Elon Musk rejects reports of Tesla investing in Nissan — But Japanese carmaker’s shares still rise almost 10%

Nissan’s stock saw a sharp 9.5 per cent rise on Friday following reports that former Japanese Prime Minister Yoshihide Suga was advocating for Tesla to invest in the struggling automaker. Speculation suggested that Tesla’s involvement could come in exchange for Nissan’s US factories.

But Tesla CEO Elon Musk was quick to refute the claims.

Despite Musk’s denial, Nissan’s shares closed at ¥458.80 (around $3) in Tokyo, marking their highest point since January, according to a report in The Guardian.


The rise came after Nissan’s failed merger talks with Honda, which fell apart due to Nissan’s reluctance to become a subsidiary of the larger Japanese carmaker.

Nissan’s ongoing struggles and potential partnerships

Nissan has faced a turbulent period marked by leadership instability and declining profitability, making it difficult to keep up with the fast-growing electric vehicle industry. Initially, the company considered a potential buyout offer from Taiwan’s Hon Hai Precision Industry, commonly known as Foxconn. The electronics giant, which manufactures iPhones for Apple, has been aggressively expanding into the electric vehicle market and had also approached Honda regarding a potential collaboration.

Meanwhile, reports suggested that Suga, along with his former aide Hiroto Izumi and ex-Tesla board member Hiro Mizuno, were spearheading efforts to bring Tesla into the picture.

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While some Nissan board members were aware of the proposal, it remained unclear whether the company had formally approached Tesla for discussions.

Elon Musk’s response and Tesla’s manufacturing focus

Despite the buzz, Elon Musk swiftly shut down the rumours.

Replying to a post on X (formerly Twitter), the Tesla CEO stated, “The Tesla factory IS the product. The Cybercab production line is like nothing else in the automotive industry.”

Musk has long emphasized that Tesla’s unique approach to manufacturing, which heavily relies on advanced robotics and metal stamping, gives it an edge over traditional automakers.

Nissan’s search for investors amid industry shifts

Geopolitical factors also could have played a role in the speculation.

With US President Donald Trump pushing for tariffs on the auto industry, expanding Tesla’s domestic production capacity could have been seen as a strategic move. But Musk, who played a key role in funding Trump’s campaign, appears more focused on developing Tesla’s proprietary technology rather than acquiring external manufacturing facilities.

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For Nissan, securing a strong investor remains a priority as it aims to maintain its global presence while navigating financial challenges. The company has been looking at various options, including collaborations with Foxconn and other tech giants like Huawei, Xiaomi, and Alibaba, who are actively entering the electric vehicle space.

FAQs:

1. Did Elon Musk confirm Tesla’s investment in Nissan?
No, Elon Musk denied reports suggesting that Tesla would invest in Nissan, stating that Tesla’s factory itself is the product.


2. Why did Nissan’s stock rise despite Musk’s denial?
Nissan’s stock rose by 9.5 per cent following reports that former Japanese Prime Minister Yoshihide Suga was pushing for Tesla to become a strategic investor, despite Musk rejecting the claim.