Ray Wang of Constellation Research discusses reports of Japan courting Tesla to invest in Nissan, explaining why it would make sense.

Japanese business leaders are reportedly urging Tesla CEO Elon Musk to step in as a strategic investor in Nissan after the company’s merger talks with rival Honda collapsed last week.

The Honda-Nissan on-again, off-again, on-again merger is the international automotive saga that keeps on giving. Now there's another twist.

The plan to approach Tesla comes after Nissan walked away from Honda’s $58bn merger proposal, spurring fears that Japan’s third-largest carmaker could fall into potentially hostile foreign hands, with Taiwanese iPhone assembler Foxconn, activists and private equity groups circling.

Shares in the beleaguered Japanese carmaker surged on Friday despite Musk denying reports that Tesla could be a prospective investor.

Nissan stock surged but pared gains on reports the Japanese automaker had a new dance partner — Tesla. Whether a deal with the EV juggernaut makes sense is another story worth exploring.

A high-level Japanese group that includes a former prime minister has drawn up plans for Elon Musk’s Tesla to invest in the struggling carmaker Nissan, following the collapse of its merger talks with rival Honda. The group includes Hiro Mizuno, a former Tesla board member, and ex-premier Yoshihide Suga.

Nissan Motor stock shot higher on Friday after a published report said the Japanese automaker was pursuing a deal to be bought by a Tesla-led consortium.