A Japanese initiative is seeking to persuade Tesla to invest in Nissan following failed merger talks between Nissan and Honda, but Tesla CEO Elon Musk appears reluctant to engage, according to a Financial Times report.
The advisory group, led by former Tesla board member Hiro Mizuno, aims to attract Musk’s interest in Nissan’s U.S. manufacturing facilities. Former Japanese Prime Minister Yoshihide Suga is also backing the plan, which envisions a consortium of investors with Tesla as the leading financial participant. The initiative seeks to prevent Nissan from falling under foreign control, particularly by Taiwanese electronics giant Foxconn, which is reportedly among the interested parties.
See also: Foxconn Proposes Partnership with Honda Following Nissan-Honda Merger Collapse – Nikkei
Nissan, which operates two U.S. assembly plants in Tennessee and Mississippi with a combined annual capacity of one million vehicles, has been struggling with underutilization. The company produced only 525,000 vehicles in the facilities last year and has since cut back on shifts. While Nissan has not commented on the investment initiative, several board members are aware of the discussions, according to the Financial Times.
The proposed investment could offer Nissan financial stability while allowing Tesla to expand its U.S. production capacity. However, significant hurdles remain. Nissan may be unwilling to sell key assets in a crucial market, and Tesla itself has indicated a preference for optimizing its existing factories rather than acquiring new ones. In its 2024 annual report, Tesla stated its focus on increasing production efficiency and raising total capacity to three million vehicles before expanding further.
See also: Honda Open to Resuming Merger Talks with Nissan if CEO Uchida Steps Down – Report
Musk has also signaled skepticism, recently reiterating Tesla’s commitment to its proprietary ‘unboxing’ production strategy, set to debut with the Cybercab in 2026 at Giga Texas. He posted on social media platform X that “The Tesla factory IS the product,” suggesting that repurposing existing combustion-engine plants would not align with the company’s long-term vision.
While the Japanese initiative remains in early stages, its success depends on overcoming resistance from both Nissan and Tesla, as well as the broader competitive landscape in the global automotive industry.
The Tesla factory IS the product.
The Cybercab production line is like nothing else in the automotive industry.
— Elon Musk (@elonmusk) February 21, 2025