After the failed merger with Honda, Nissan (NSANY.US) is now in talks with Tesla, Inc. (TSLA.US) to acquire its American factories.

According to informed sources, a Japanese consortium has drafted a plan to invest in Nissan Motor (NSANY.US), led by former Tesla, Inc. board member Hiromichi Mizuno. This new proposal has the support of former Japanese Prime Minister Yoshihide Suga. Several members of the Nissan board are aware of this move. Upon the potential investment news, Nissan's stock price rose by over 12%. The group believes that Tesla, Inc. (TSLA.US) is interested in acquiring Nissan's factory in the United States. Reports suggest that the proposal envisions forming an investor consortium, with Tesla, Inc. being the largest supporter, and potentially including a minority stake investment from Foxconn. Last week, Nissan Motor and Honda Motor Co., Ltd. Sponsored ADR (HMC.US) officially terminated their merger talks, swiftly ending a partnership that could have created one of the world's largest automakers. The failure of the deal had a particularly severe impact on Nissan. Since the resignation of Carlos Ghosn in 2018, Nissan has been plagued by weak sales, excess capacity, outdated models, an unpopular image, and frequent changes in leadership. Nissan's difficulties became apparent at the end of last year, when the company announced a 94% drop in net profit for the first half of the year and plans to cut 9,000 jobs and reduce capacity by 20%.