Tesla CEO Elon Musk has seemingly ended any hopes Nissan has of securing an investment from the U.S. automaker. After failing to come to terms on a $58 billion merger with Honda last week, Nissan was reportedly looking to a new investor. However, before negotiations even began, Musk made any prospect of a deal seem unlikely.
According to a report from the Financial Times, the Japanese automaker was going to attempt to get Tesla to purchase their manufacturing facilities in the United States. Citing sources familiar with the plans, the report said a high-level Japanese delegation, including former Prime Minister Yoshihide Suga, was spearheading the proposal. At the forefront would also be a familiar face, as former Tesla board member Hiromichi Mizuno will also be part of the delegation, which aimed to woo Tesla with Nissan’s underutilized U.S. production facilities that could strengthen Tesla’s manufacturing presence amid rising trade tensions.
However, while he did not explicitly reject the deal, Musks comments on X make it seem unlikely that Tesla will take them up on the offer.
“The Tesla factory IS the product. The Cybercab production line is like nothing else in the automotive industry,” Musk said on X.
The proposal comes on the heels of Nissan’s decision to end talks for a potential $58 billion merger with Honda, a move that raised concerns over the automaker’s long-term competitiveness. Industry insiders fear that without a partnership, Nissan could become a target for acquisition by foreign entities such as Taiwan’s Foxconn.
By bringing Tesla into the fold, Nissan can avoid such risks while providing them with additional manufacturing capacity in the U.S., the report explains. Nissan’s Tennessee and Mississippi plants, which have the capacity to produce one million vehicles annually but only manufactured 525,000 units in 2024, could serve as a valuable asset.
Given Musk’s comments, it appears as though Nissan may be leaving empty handed before negotiations even began. However, with Nissan’s future in peril, the Japanese automaker might pivot and come up with a different, or more enticing offer, that Tesla might consider.
