Nissan Shares Plummet After Elon Musk Denies Tesla Investment Reports

Nissan’s stock took a major hit after Tesla CEO Elon Musk publicly dismissed reports suggesting that the EV giant was considering an investment in the Japanese automaker. Following Musk’s statement, Nissan’s shares dropped by as much as 10%, marking one of the company’s biggest declines in recent weeks.

How the Rumors Started?
The speculation originated from a Financial Times report, which claimed that a Japanese-backed group was exploring the possibility of bringing Tesla on board as an investor in Nissan. The alleged reasoning behind this move was Tesla’s potential interest in Nissan’s U.S. manufacturing plants, which could help expand its production capacity.

However, Musk swiftly shut down the rumors, taking to social media platform X (formerly Twitter) to label the news as “fake”. He further emphasized that Tesla’s Cybercab production line is unlike anything else in the industry, indirectly suggesting that Nissan’s existing manufacturing infrastructure would not align with Tesla’s vision.

Stock Surge and Sudden Fall
Before Musk’s denial, Nissan’s stock had actually been on an upward rally, climbing by nearly 9.5% last week as investors anticipated a possible deal with Tesla. However, the excitement was short-lived. Once Musk debunked the claims, the stock witnessed a sharp reversal, losing its gains and hitting a new three-week low.

Adding to the uncertainty, former Tesla board member Hiromichi Mizuno also dismissed the reports, stating that he was not involved in any Japanese-government-backed initiative to bring Tesla into Nissan’s fold.

Nissan’s Ongoing Struggles
The latest stock drop comes at a time when Nissan has been facing financial and strategic challenges. Just earlier this month, the company’s attempts to merge with Honda failed, highlighting the difficulties it faces in securing strong partnerships.

With the automotive industry shifting toward electrification and competition intensifying, Nissan is under pressure to reinvent its strategy. The Tesla investment rumor initially appeared to be a potential game-changer, but Musk’s clear denial has left Nissan back at square one.

What’s Next for Nissan?
The incident highlights how sensitive Nissan’s stock is to market speculation. While the company continues to explore growth opportunities, it remains to be seen whether it will seek other investors or attempt another strategic alliance.

For now, one thing is clear—Tesla is not coming to Nissan’s rescue.

Acknowledgment:
The Article is inspired by various news websites & Pages, while the content has been independently crafted by the Motorpark team.
Sources & Credits:
Hindustan Times Auto – Analysis on Nissan’s recent financial challenges
Financial Times – Original report on Tesla’s rumored Nissan investment
Bloomberg – Nissan’s stock movement and Musk’s response
The Malaysian Reserve – Hiromichi Mizuno’s statement on the rumors