Elon Musk dismisses Nissan buyout talks; shares plummet 10%
Elon Musk has announced that Tesla Motors will not purchase Nissan. Recently, rumours were 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 collaboration between Nissan and Honda Motor - another giant of 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, the Financial Times reported that Elon Musk allegedly wanted to purchase Nissan's American assets. As a result, the Japanese manufacturer’s stock price rose, but the positive sentiment did not last long.
Musk responded to these reports on platform X, stating that he is uninterested in Nissan. He emphasised that he is focused on developing Tesla, including Cybercab, an autonomous robotaxi.
The Tokyo stock market reacted to Musk's post, causing Nissan's stock to drop 10%, the largest decline in three weeks.
Until recently, Taiwanese contractor Hon Hai Precision Industry, commonly known as Foxconn, the leading 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 aims to reduce the development time of new projects to 30 months. Moody's rating agency has downgraded Nissan's rating to "junk".
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