Japan seeks Tesla investment in Nissan, Foxconn approaches Honda, say reports

TOKYO: A high-level Japanese group that includes a former prime minister has drawn up plans for Tesla to invest in Nissan after the collapse of its merger talks with Honda, the Financial Times said today.

A separate Nikkei newspaper report said Taiwan's Foxconn has proposed forming a partnership with Honda with an ultimate aim of creating a four-way framework that would also include Nissan and Mitsubishi Motors.

The Japanese group behind the plans for Tesla to invest in Nissan hopes the Elon Musk-led company will become a strategic investor, believing it is keen to acquire Nissan's plants in the United States, according to the Financial Times.

The proposal is being led by former Tesla board member Hiromichi Mizuno with support from ex-premier Yoshihide Suga and his former aide Hiroto Izumi, the newspaper said, citing unidentified sources.

Suga's office said it was not aware of a plan to encourage Tesla to invest in Nissan. Suga stood down as prime minister in 2021 but remains a member of Japan's lower house, representing a constituency in Nissan's home prefecture of Kanagawa.

In a post on social media platform X, Mizuno said he had "absolutely no involvement" in what was reported in the FT article, adding that he doubted if Tesla had any interest at all in Nissan factories given Tesla's unique factory design.

Nissan declined to comment on the report, while Tesla did not respond to requests for comment. Reuters was not immediately able to contact Izumi.

Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said there was no value for Tesla in investing in infrastructure from a legacy carmaker.

"Tesla's secret weapon is the novel way its factories have been designed and optimised for its cars," Britzman said, adding that the company had ample capacity at its existing factories.

Nissan and Honda ended talks to forge a US$60-billion car company last week. Nissan said it will seek new partnerships.

According to the FT, some Nissan board members have suggested Tesla and Apple as ideal strategic investors.

Apple did not respond to a request for comment.

Sources have previously told Reuters that Nissan was open to working with new partners, with the world's largest contract electronics manufacturer Foxconn seen as one candidate.

The Nikkei newspaper reported today that through partnering with Honda, Foxconn aimed to form a broader framework for cooperation to compete against Tesla and Chinese EV makers.

Honda declined to comment on the Nikkei report. Foxconn representatives did not immediately reply to a comment request.

Nissan CEO Makoto Uchida said last week that Nissan and Foxconn had not held talks at management level. A day before Uchida made his remarks, the Taiwanese firm's chairman had said it would consider taking a stake in Nissan for cooperation.