Japan Dials Tesla to Save Nissan after Honda Deal Collapse

A high-level committee which includes Japan’s former Prime Minister Yoshihide Suga has mooted plans for Elon Musk’s Tesla to invest in Nissan, Financial Times reported. The development comes after the collapse of the $58 billion merger between Nissan and Honda amid fears of the Japanese automaker’s takeover

As per reports, the deal will see Tesla in the driver’s seat with the offer from Foxconn to hold a minority stake to avoid a potential takeover by the Taiwanese company.

Previously, talks with Honda took place after Foxconn approached Renault in 2024 to buy some of its shares in the Japanese carmaker. As the deal got off track earlier this year, Foxconn confirmed its interest in acquiring a minority stake in Nissan to boost its EV manufacturing capabilities.

Notably, Nissan started searching for a strategic partner in recent weeks, with Tesla and Apple among the names suggested by some of its board members as ideal targets. The Japanese automaker had announced to lay off 9000 people after reporting quarterly losses.

Elon Musk Reacts on Tesla’s Nissan investment

Elon Musk responded to a user sharing the report on X, writing, “The Tesla factory IS the product. The Cybercab production line is like nothing else in the automotive industry.”