Could Elon Musk’s Tesla help save Nissan?

A high-level Japanese group that includes a former prime minister has drawn up plans for Tesla to invest in Nissan after the collapse of its merger talks with Honda, the Financial Times said on Friday.

The group hopes Elon Musk’s Tesla will become a strategic investor, believing the company is keen to acquire Nissan’s plants in the US, according to the report.

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

Nissan has been working on a turnaround programme under which it plans to cut its workforce by 9,000 people and global manufacturing capacity by 20% as it struggles with worse-than-expected performance in key markets the US and China.

Suga’s office said it was not aware of a plan to encourage Tesla to invest in Nissan. Suga stood down as prime minister in 2021 but remains a member of Japan’s lower house, representing a constituency in Nissan's home prefecture of Kanagawa.

Nissan declined to comment on the report, while Tesla did not respond to requests for comment. Reuters was not immediately able to contact Izumi and Mizuno.

Nissan shares closed up 9.6% after the FT report. The carmaker and Honda ended talks to forge a $60bn car company last week. Nissan said it will seek new partnerships.

According to the FT, some Nissan board members have suggested Tesla and Apple as ideal strategic investors.

Apple did not respond to a request for comment.

Sources said Nissan was open to working with new partners, with Taiwan's Foxconn seen as one candidate. Nissan CEO Makoto Uchida said last week that Nissan and Foxconn had not held talks at management level.

Reuters