Constellation Research chairman and founder Ray Wang said that a possible investment by Tesla Inc. (NASDAQ: TSLA), in Japan’s Nissan Motor Co Ltd. (TYO: 7201), would be a ‘brilliant decision.
The remarks come shortly after it was reported that a Japanese power group wants to invest in Nissan, after Nissan failed to reach a deal with Honda.
Nissan and Tesla have not officially responded to the Financial Times article.
Elon Musk has hinted on X, though, that he is not interested in a partnership with Nissan.
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Following speculation, shares of the EV giant ended Monday with a roughly flat price.
What would make Tesla invest in Nissan
According to reports, the high-level Japanese organization expects Elon Musk’s interest in purchasing Nissan’s US production facilities.
Tesla could use Nissan’s factories to boost its production capacity and reduce costs. This would be useful as Tesla’s EV business grows again in 2025.
The Japanese carmaker is also well-established in many markets including Japan and Asia.
Tesla’s growth could be accelerated by investing in Nissan.
In a CNBC Interview on Monday, Wang stated: “I believe it will be an extremely smart move to get around Trump’s tariffs.”
Tesla’s stock has dropped more than 20 percent from its highs for the year.
Nissan’s potential investment in Tesla
It would be an incredible game changer for Nissan if Tesla agreed to become a strategic shareholder.
Why? According to Constellation Research’s principal analyst, it is in need of help getting into EV-related markets and areas.
Combining their automotive expertise and the battery technology they have developed could also help Tesla and Nissan to compete more aggressively with the Chinese electric vehicle makers who are launching new models at a price of only $10,000.
You can’t survive in this market without scale. If this is a play on scale, then it’s a very good idea,” Ray Wang said in an interview with CNBC this week.
Nissan’s shares rose by about 10% after the FT article.
Is Tesla stock worth owning in 2025?
Nissan’s announcement comes just days after Wolfe Research analysts labelled Tesla as one of the top stocks to short, after its Q4 net income dropped 71% year over year.
Wolfe believes that TSLA is overvalued, with multiple headwinds to come. These include increased competition by Chinese competitors and questions about its autonomous technology.
Tesla Inc. missed both the top and bottom-line Street expectations in its fourth fiscal quarter.
The EV shares do not offer a dividend, making it less rewarding for investors to hold them despite the possible headwinds.
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