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Elon Musk won't be the savior Nissan is looking for
NSANYNissan Motor(NSANY) Business Insider·2025-02-21 13:43

Core Viewpoint - Nissan is in a precarious financial situation and is seeking investment, but Tesla is unlikely to be a viable option despite initial speculation [1][5][6]. Group 1: Financial Situation of Nissan - Nissan's credit rating was downgraded to junk status by Moody's, following the collapse of a proposed 50billionmergerwithHonda[5].Thecompanyisprojectedtoincuranannuallossof80billionyen(50 billion merger with Honda [5]. - The company is projected to incur an annual loss of 80 billion yen (519 million) due to declining sales in China and the US, exacerbated by competition from Chinese EV companies [5]. - CEO Makoto Uchida has announced plans to cut 9,000 jobs globally and reduce vehicle production to stabilize the company [6]. Group 2: Tesla's Position and Response - Reports suggested that a consortium of Japanese investors was interested in approaching Tesla for potential investment in Nissan's factories [2]. - Elon Musk quickly dismissed the idea, emphasizing that Tesla's factory design is unique and not compatible with Nissan's operations [3][4]. - Tesla has shifted its focus towards autonomous vehicles and robotics, making it an unlikely partner for Nissan's traditional manufacturing needs [7]. Group 3: Market Dynamics - Tesla's production strategies, including advanced manufacturing techniques like gigacasting, would complicate any potential conversion of Nissan's factories [7]. - The US EV market is facing challenges, including a decline in Tesla's annual sales and the rollback of federal support for electric vehicles under the Trump administration [8].