Nissan Motor's shares jumped more than 12% following reports of Tesla's interest in investing in the struggling company, according to the Financial Times, citing informed sources.
The newspaper reported that a Japanese consortium, led by a former Tesla board member and backed by Japan's former prime minister, has devised a plan to involve Tesla in a potential acquisition of Nissan's factories in the United States.
Nissan expects to report a net loss of 80 billion yen ($519 million) for the fiscal year ending March 31, as it struggles to rebuild its troubled business without support from Honda Motor, after the two companies officially ended their merger negotiations.
Nissan also slashed its annual operating profit forecast from $975 million to $780 million, a sharp decline compared to its initial projection of $3.2 billion.
The failure of the Nissan-Honda deal is a major blow to Nissan, which faces significant challenges, including weak sales, excess production capacity, outdated and unpopular models, and ongoing management instability since the dismissal of Carlos Ghosn in 2018.
Honda and Nissan have officially ended their merger talks, swiftly shutting down a potential partnership that could have created one of the world's largest automakers.
The two companies announced that they would continue their strategic partnership alongside Mitsubishi, focusing on collaboration in battery development, autonomous driving technologies, software, and electric vehicle technology within their factories.
The announcement of the talks' termination comes nearly three months after reports suggested a possible alliance between Honda and Nissan. Honda had been seeking to strengthen its competitiveness amid the rapidly evolving global automotive industry, while Nissan was looking for a financial lifeline.
