Elon Musk has put an end to speculation about a potential Tesla investment in Nissan. The answer? A resounding no.
Musk took to X to publicly reject the idea, causing Nissan’s stock to plummet after a brief rally fueled by the rumors.
Nissan’s Struggles and the Hope for Tesla
The Japanese automaker is in the midst of a financial crisis, grappling with declining sales and a major cost-cutting plan that includes laying off 9,000 employees. Nissan executives have also warned that the company could run out of cash within a year if a financial lifeline isn't secured.
Last Friday, Nissan shares jumped nearly 10% after reports surfaced that a group of Japanese businessmen and former politicians were strongly advocating a partnership with Tesla.
The group speculated that Tesla might be interested in Nissan’s U.S. production facilities.
However, the optimism was short-lived. Musk swiftly dismissed the rumors, stating that Tesla has more than enough production capacity and is not considering any investment in Nissan.
Following Musk’s statement, Nissan’s stock nosedived by 10%, marking its worst decline in three weeks.
A Blow to Nissan’s Survival Efforts
For Nissan, Tesla’s rejection is yet another setback in its fight for survival. CEO Makoto Uchida has even voluntarily cut his salary in half in an effort to navigate the crisis.
Meanwhile, Nissan’s separation from Renault has failed to resolve its financial struggles, and a proposed merger with Honda has also collapsed.
Reports suggest that Honda’s CEO, Toshihiro Mibe, demanded Uchida’s resignation as a condition for negotiations, a move that ultimately led to the deal being scrapped. Furthermore, Honda reportedly wanted to make Nissan a subordinate brand, a proposition that Nissan was unwilling to accept.
With limited options left, Nissan’s future remains uncertain.
