Elon Musk dismisses Nissan takeover, stocks nosedive 10%
Elon Musk announced that Tesla Motors would not purchase Nissan. Recently, rumors circulated that the world's richest man might invest in the financially troubled Japanese giant. Following Musk's declaration, 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. It emphasized 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 most significant decline in three weeks.
Until recently, Taiwanese contractor Hon Hai Precision Industry, commonly known as Foxconn, the foremost 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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