Tesla Eyes Nissan's U.S. Factories Amid Strategic Shift and Falling Sales

Nissan's recent challenges have been further highlighted following the failed merger with Honda, with the automotive giant now facing potential shifts in its operations. Japanese insiders have disclosed a plan by a Japanese consortium, led by former Tesla board member Hiromichi Mizuno, to facilitate Tesla's investment in Nissan. This initiative is purportedly backed by former Prime Minister Yoshihide Suga and is known to several Nissan board members.

The strategic focus is reportedly on Tesla acquiring Nissan’s manufacturing facilities in the United States. This move is seen as a potential shield against possible tariff threats from the U.S. government, and aims to enhance Tesla’s production capabilities on American soil. The plan envisions creating an investment group where Tesla would play a primary role, potentially complemented by a minority stake from Foxconn, thus averting a full acquisition.

Nissan's recent struggle with a decline in sales and operational inefficiencies underlines the urgency for strategic partnerships. After discontinuing the merger discussions with Honda, Nissan's outlook was further dampened as it faced significant financial challenges, including reporting a steep 94% drop in net profit for the first half of the fiscal year and announcing plans to cut 9,000 jobs globally.

Further intensifying the discussions around a potential sale of its U.S. assets is Nissan's underutilization of its factories in Tennessee and Mississippi. While these plants have a combined annual capacity of one million units, production plummeted to merely 525,000 units in the previous year. Consequently, Nissan plans to reduce production capacity by 20% and has already announced shift reductions in its U.S. plants, reflecting a broader strategy to consolidate its operations amidst declining sales figures.

The automotive industry is closely watching these developments as Nissan seeks to stabilize its position and explore fruitful collaborations with key technology players. As whispers of potential partnerships with tech giants like Tesla and Apple circulate, Nissan remains a company in transition, navigating a turbulent market environment to secure its future in the competitive automotive landscape.