Nissan is officially junk debtor now, could merge to avoid bankruptcy

Moody’s Ratings has officially awarded Nissan Motor Co. the “junk” credit status, implying high insolvency risks and serious management issues.

At the same time, rumors emerged that the automaker is actively looking for companies willing to invest in it or merge with it. One such report even claimed that Tesla Inc. was looking to buy out Nissan’s industrial capacities in the United States.

Elon Musk chimed in shortly thereafter to debunk the rumors, saying that his Gigafactories already meet all the expectations of his business – and do it a level of technological advancement unattainable by third parties. He also stressed that, if Tesla ever needed another car factory, it would easily construct one where necessary.

Another rumor says that Taiwanese semiconductor company Foxconn may be interested in striking a merger deal between Honda, Mitsubishi and Nissan. However, after the failed negotiations that the three automakers held over the past few months, Nissan may no longer be in a position to ask for financial help from these sources.