Nissans latest desperate gamblesee if Tesla will buy the company
arstechnica.com
Senior politicians in Japan are not going to let Nissan die easily. The automaker has been struggling for some time now, with an outdated product portfolio, ongoing quarterly losses, and soon, the closure of factories and thousands of layoffs. The Japanese government has been trying to find a suitor and had hoped that Honda would do its patriotic duty and save its rival from extinction.That dealone branded "a desperate move" by former Nissan CEO and fugitive from Japanese justice Carlos Ghosnfell apart last week after Renault demanded a price premium for its shares in Nissan, and Nissan demanded a merger of equals with Honda. In reality, it was always going to be a takeover, with very little in it for Honda in the way of complimentary product lines or access to new technologies.Today, we learned of yet another desperate movethe former Japanese Prime Minister Yoshihide Suga is among a group that is trying to get Tesla to invest in Nissan instead.Such a merger seems extremely far from likely, even if Tesla CEO Elon Musk wasn't completely distracted dismantling the federal government and its workforce. While the company still maintains a ludicrous market capitalization thanks to retail investors who believe it is poised to sell billions of humanoid robots to every human on earth, as an automaker it may well be struggling almost as much as Nissan.As experts told us last year, Tesla is not a well-run enterprise. Its product range suffers, like Nissan's, from being outdated compared to the competition. It appears that consumers have turned against the brand in Europe and increasingly the US, and its quarterly financial results have been more than disappointing of late. Tesla's free cash flow fell by 18 percent in 2024 to $3.6 billion, although such is the value of Tesla stock that, were a Tesla-Nissan deal to happen, the former could pay for the latter with equity, should it entertain the idea seriously.
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