Japan Pursues Tesla Investment in Nissan as Honda Sees Foxconn Partnership

Japan is exploring a potential investment deal with Tesla to inject capital into Nissan, while Taiwan’s Foxconn has proposed forming a partnership with Honda to gain access to the Japanese automaker’s expertise. The plans come as Nissan seeks new partnerships amid its exit from talks with Honda over a $60-billion car company merger.

A high-level Japanese group, led by former prime minister Yoshihide Suga and his former aide Hiroto Izumi, has drawn up plans for Tesla to invest in Nissan. However, analysts question the feasibility of such an investment, citing Tesla’s existing capacity at its factories and recent decline in vehicle deliveries.

Tesla is said to be keen on acquiring Nissan’s US plants, which could provide a strategic advantage amidst President Donald Trump’s planned tariffs on auto imports. The Japanese automaker’s shares jumped 9.6% after news of the potential deal with Tesla.

In a separate development, Foxconn has proposed forming a partnership with Honda, aiming to create a four-way framework that would also include Nissan and Mitsubishi Motors. This move is seen as an attempt by the Taiwanese firm to compete against Tesla and Chinese EV makers.

Nissan CEO Makoto Uchida previously stated that the company had not held talks with Foxconn at management level, but the Taiwanese firm’s chairman has expressed interest in taking a stake in the automaker for cooperation purposes.

Source: https://www.reuters.com/business/autos-transportation/japan-court-tesla-nissan-investment-ft-reports-2025-02-21