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A high-level Japanese group is reportedly proposing that Elon Musk's Tesla invest in ailing automaker Nissan after its merger with domestic competitor Honda collapsed earlier this month.
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Tesla board member Hiro Mizuno, former prime minister Yoshihide Suga, and his former aide Hiroto Izumi have drawn up the plans and plan to approach Tesla, according to the Financial TImes.
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The group is seeking an investment into Nissan by a consortium led by Tesla and possibly including a minority stake by Taiwan's Foxconn.
A high-level Japanese group is reportedly planning to propose to Tesla (TSLA) to invest in ailing automaker Nissan after its merger with domestic competitor Honda collapsed earlier this month.
Nissan shares closed 9.5% higher in Tokyo trading following the report.
Tesla board member Hiro Mizuno, former prime minister Yoshihide Suga, and his former aide Hiroto Izumi have drawn up the plans and plan to approach Tesla, according to the Financial TImes, citing three people with direct knowledge of the move.
Tesla may want to be a strategic investor in Nissan since the group believes the U.S. electric vehicle maker desires the Japanese firm's American factories, the report said. Buying the U.S. plants would give Tesla an increased domestic manufacturing base as President Donald Trump readies tariffs against auto imports into the country, the FT said.
The report said the group's plan is for Tesla to lead a consortium that may include Taiwan's Foxconn, which assembles Apple (AAPL) iPhones.
Investopedia has not independently confirmed the report. Nissan, Tesla, and Foxconn did not immediately respond to requests for comment.
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