Musk quashes Nissan takeover rumors, stock takes a hit
Elon Musk has announced that Tesla Motors will not purchase Nissan. Recently, there were rumours that the world's richest man would invest in the financially troubled Japanese giant. Following Musk's announcement, Nissan's stock price plummeted.
Nissan is facing bankruptcy. To save the company, there was talk of collaborating with Honda Motor, another giant in the Japanese automotive market. Ultimately, however, no transaction took place, as Nissan did not want to be taken over by a competitor.
A few days ago, however, "Financial Times" reported alleged interest in purchasing Nissan's American assets by Elon Musk. As a result, the Japanese manufacturer’s stock price rose, but the positive sentiment didn't last long.
Musk responded to these reports on platform X by stating that he is not interested in Nissan and emphasized that he is focused on developing Tesla, including the Cybercab, an autonomous robotaxi.
The Tokyo stock market reacted to Musk's post, causing Nissan's stock to drop by 10%. It was the largest decline in three weeks.
Until recently, Taiwanese contractor Hon Hai Precision Industry, commonly known as Foxconn, the primary manufacturer of Apple's iPhones, also expressed interest in Nissan.
Nissan's problems
Additionally, Nissan Motor CEO Makoto Uchida announced a 20% reduction in production capacity. The company wants to reduce the development time for new projects to 30 months. Moody's rating agency has downgraded Nissan's rating to "junk."
Read also:
