Nissan shares surge 11% on talks of seeking Tesla aid: Report 

Nissan shares rose 11% on Friday after a report stated that a Japanese group including an ex Prime Minister, plans to seek investment from American EV maker Tesla, AFP reported.

This comes on the back of the recently failed merger talks between Nissan and Honda. 

Three persons in the know told The Financial Times that former premier Yoshihide Suga was in favour of the proposal to reach out to Tesla.

"The group is hopeful Tesla will become a strategic investor since they believe (it) is keen to acquire Nissan's plants" in the United States, the newspaper said.

AFP could not elicit a response from Nissan. 

Earlier on Friday, Moody's downgraded the credit rating of Nissan to junk, saying the decision "reflects Nissan's weak profitability driven by slowing demand for its ageing model portfolio".

Suga, 76, served as prime minister from 2020-21 and was a close ally of assassinated ex-premier Shinzo Abe, Japan's longest-serving leader.

The Financial Times said the new proposal was being led by former Tesla board member Hiro Mizuno, and was also supported by a former aide of Suga.

It added that several Nissan board members were aware of the plan.

"The proposal envisions a consortium of investors, with Tesla as the largest backer, but also includes the possibility of a minority investment by Foxconn," the Financial Times said.