Elon Musk Appears To Downplay Nissan Investment Rumors as Moody’s Downgrades Automaker’s Rating to Junk Status

Following rumors of Tesla’s potential interest in Nissan’s U.S. factories, Tesla CEO Elon Musk took to X to seemingly downplay the speculation, as Forbes detailed.

In an early morning post shared to X on Feb. 21, Musk wrote: “The Tesla factory IS the product. The Cybercab production line is like nothing else in the automotive industry.”

While not a definite statement one way or the other regarding the rumored deal between a Japanese group — including the nation’s former prime minister — and Tesla, Musk’s post was made in response to a shared Financial Times news article outlining the potential investment prospect.

This bit of industry speculation takes place a short time after merger talks between Nissan and Honda collapsed, with the former company facing extreme headwinds concerning sales numbers and overall valuation. Per reports, Honda was interested in acquiring the other automaker as a subsidiary and was bargaining from a position of strength. Nissan balked at the prospect, and the talks collapsed on Feb. 13.

China’s Foxconn has expressed interest in acquiring Renault’s current stake in Nissan in a cooperative mode, rather than one of acquisition — although the Financial Times report indicates that the Japanese overture to Tesla is founded on concerns regarding partnership with a company based out of a “hostile foreign country,” as Forbes underscored.

Moody’s Downgrades Nissan’s Debt Rating to Junk Status

In a further bit of dispiriting news for Nissan, The Wall Street Journal reported on Feb. 21 that Moody’s had downgraded the automaker’s debt status from Ba1 to Baa3, the lowest investment grade.

Moody’s based its downgrade decision on Nissan’s weak profitability exhibited by slowed demand over its current product lineup, with the company facing weak sales in both Chinese and American markets. The risks attached to the company’s planned restructuring efforts were also integrated into the downgrade decision issued by the credit rating business.