To The Moon

$Honda(HMC)$ $Mitsubishi Corp.(MSBHF)$ $Nissan Motor Co., Ltd.(NSANY)$

Today, we’ve got a plot twist straight out of a Disney drama—Honda, Nissan, and Mitsubishi are teaming up to challenge China’s EV Superpower, BYD, and of course, sidekick Tesla LOL.

BYD has been dominating the electric vehicle scene with affordable, high-quality cars, rapidly becoming a major player both in China and globally. In 2023, BYD even outsold Tesla in the final quarter, solidifying its place as a serious competitor on the world stage. Their impressive growth, along with aggressive expansion into Europe, Southeast Asia, and other emerging markets, shows they’re not just aiming for success at home, but on a global scale. Models like the Auto 3, Han, and Seal combine sleek design, advanced battery tech, and competitive pricing, making them a hit worldwide.

Meanwhile, Tesla remains the Stock leader, setting the bar with cutting-edge technology, vertical integration, and a massive global fan base. From the runaway success of the Model 3, which made EVs mainstream, to their expansive supercharger network and the rollout of full self-driving software, Tesla continues to push the boundaries of what’s possible like “Tincan Truck”. Together, these two giants have reshaped the auto industry, setting the standard that Honda, Nissan, and Mitsubishi now have to chase like Disney LOONEY TUNES WACKY WORLD.

But here’s the real question: Is this partnership Japan’s power move to reclaim its spot in the automotive world, or are we watching a potential disaster unfold? Buckle up—let’s dive into it!

Takeover “Merger Face Value“

You know when two cars break down on the side of the road, and one driver says, “Hey, let’s link up and tow each other out”? Well, that’s basically Honda and Nissan right now. Instead of a tow rope, they’re calling it a merger. It’s two seasoned racers trying to catch up to the new kids pulling ahead. But wait—Mitsubishi’s tagging along too, like that third wheel who’s just happy to be there. Don’t get me wrong, Mitsubishi has a legacy—remember the Lancer Evo? But these days, they’re not exactly setting the car world on fire. The days of dominating rally racing feel like ancient history.

This isn’t just a partnership—it’s a desperate attempt to stay relevant in a race they helped start, but now they’re trailing behind. Is this a turbocharged comeback, or just dead weight holding them back? Let’s break it down and see what’s really going on under the hood.

The media has wrongly reported today that Honda and Nissan are planning a merger, but this isn't a merger—it's completely nonsensical. In reality, it's a takeover. Hello, everyone, welcome to the channel! I'm Sam Evans, and you're watching The Electric Viking—great to have you here.

Months ago, former Nissan CEO Carlos Ghosn hinted that Honda was trying to take over Nissan. Why? Because both companies are struggling, and Honda sees an opportunity to merge two underperforming companies into one large struggling entity. It sounds absurd, but that's often how these things unfold. Companies think that acquiring others, even if they're not doing well, will somehow make them better—it’s like chasing fool's gold.

The media reports today suggest that Honda and Nissan are forming a "joint venture" with equal power, but that's not the case. As Ghosn pointed out, it's more of a takeover. Imagine if Nissan tried to acquire Fiat when it was on the brink of bankruptcy—Fiat would probably agree just to survive. That’s essentially what’s happening here. This isn’t a partnership filled with promise and harmony; it’s a move driven by necessity.

Nissan has openly admitted it only has 12 to 14 months to survive, citing a massive debt load of about $7 billion and a continuous loss over the last three quarters. Its debt is rated junk, and it’s in financial turmoil. So, it needs Honda more than ever—this situation sets up the perfect opportunity for Honda to step in.

Why Honda, Nissan, and Mitsubishi Are Falling Behind

Alright, let’s face the facts: Tesla changed the game completely. The Model 3 made EVs mainstream, while their supercharger network redefined the convenience of charging. Meanwhile, BYD has taken a different route, mass-producing affordable EVs at scale and dominating emerging markets. In China alone, BYD is outselling most global automakers combined, and now they’re expanding into Europe and Southeast Asia. Their innovation, pricing strategy, and ability to control production costs give them a massive edge.

On the flip side, Honda and Nissan are struggling to keep up. Nissan’s Leaf was revolutionary, but now it feels outdated. Their ARA EV, the car that was supposed to mark their comeback, has had trouble gaining traction due to slow production and poor marketing. Honda’s in a similar situation. While they’re kings of motorcycles and reliable gas-powered cars, they’ve been slow to transition to electric. Now that they’re finally jumping into the EV game, it’s clearly too little, too late. Mitsubishi’s situation is even worse—once a rally icon, they’ve practically disappeared from the global EV conversation, mainly focusing on hybrids like the Outlander. It’s like three cars running on fumes, hoping that teaming up will get them to the next pit stop.

Let’s talk about the merger—or, should we say, takeover? The media calls this a partnership, but it feels more like Honda is in the driver’s seat, with Nissan and Mitsubishi just trying to hold on. A merger suggests teamwork and equal footing, but this feels more like one brand calling the shots. Nissan, already reeling from years of leadership chaos post-Carlos Ghosn, risks losing even more autonomy if this doesn’t work out. Meanwhile, Honda is shouldering the weight of expectations. If this partnership fails, the blame falls on them.

Ghosn predicted that Japanese automakers would need to consolidate to survive, and now we’re seeing that play out. But let’s be real—throwing together three struggling automakers doesn’t automatically create a powerhouse. If anything, it could highlight their weaknesses. Combining two weak engines won’t make a Bugatti. On paper, this seems like a strategic move—more resources, shared technology, and a bigger market presence—but in reality, their outdated corporate structures and lack of risk-taking are holding them back. These companies move slower than their competition, like Nissan’s Ariya, which took years to hit the market. By the time it launched, competitors like Tesla’s Model Y and BYD’s Seal were already dominating.

Tesla’s success comes from its vertical integration. They design everything in-house—from batteries to software to charging networks. BYD, on the other hand, cuts costs by manufacturing its own components, flooding the market with affordable EVs. Honda, Nissan, and Mitsubishi simply can’t match that pace unless they innovate fast.

Merger or Takeover what’s the plan?

So, what’s the plan? This partnership is all about catching up in the EV race. Honda, Nissan, and Mitsubishi know they’re running out of time. Tesla and BYD are miles ahead, both in technology and market presence. Can these Japanese automakers close the gap? It’s not impossible, but it won’t be easy. They need to strip away bureaucracy, take risks, and rebrand themselves as EV leaders. Nissan already has EV experience with the Leaf, but it needs to evolve. Honda’s late start means they need to double down on innovation. Mitsubishi needs to remind people they’re still around.

Here’s the big question: Is this a dream team, or just three brands headed for a slow-motion crash? Japanese automakers once gave us legends like the Skyline, the Civic, and the Evo—cars that didn’t just dominate the roads, they defined a generation. Watching these brands struggle now feels personal. Fans want a comeback, but nostalgia alone won’t win the EV race. To succeed, Honda, Nissan, and Mitsubishi need to prove they can compete against innovators like Tesla and BYD. The stakes have never been higher, and if they don’t act fast, they risk being left behind for good.

Honestly, it's hard to see how. Both Honda and Nissan are bound by strict hierarchies, rules, and regulations—meritocracies are practically non-existent. This could lead to internal chaos. Additionally, neither company is excelling in mass EV production, and their sales are declining. So, what’s the upside for Honda? Nissan might be saved temporarily, but that doesn’t guarantee long-term success for either company.

Reports of this merger started circulating after Nissan looked for an anchor investor to replace part of Renault’s equity, and it wasn’t ruling out Honda buying some shares. Honda, meanwhile, has been pushing hybrid cars while also spending more to boost its EV capacity, but it’s still only selling a tiny fraction of electric vehicles worldwide, similar to Toyota’s sales.

Now, this "merger" might even include Mitsubishi, a small player that’s also struggling. For anyone who thinks Mitsubishi's success in the Australian market means everything's fine, let me remind you: Australia is a small fraction of the global car market. The global automotive market is massive, and Australia accounts for only about 1% of total global car sales. If these three companies are hoping their combined effort will rival Toyota, they’re mistaken. Toyota has essentially controlled the Japanese auto industry for years.

This merger aims to consolidate the Japanese auto industry into two major camps—Honda, Nissan, and Mitsubishi on one side, and Toyota on the other. The hope is that this will provide the resources needed to compete with China’s automotive giants and survive the next decade.

However, the idea that merging these three companies will solve their problems doesn’t seem realistic. These companies have been lagging behind in terms of innovation, and simply joining forces won’t magically fix that. A merger of slow-moving companies doesn’t create speed.

The real question is: how is this merger supposed to help?

The three companies aren’t producing great electric cars or keeping up with market demands. Economies of scale might offer some cost savings, but how does this make them a real threat to Tesla and China’s automakers? In fact, I don’t see how this merger helps them compete at all.

Nissan has been restructuring in an attempt to recover from falling profits, but its credit rating has been downgraded to junk. Honda and Nissan merging might create one of the largest automotive groups in the world short-term, but history shows that merging struggling companies doesn’t always lead to success. Look at Volkswagen, which now holds massive debt, or Stellantis, whose many brands are struggling.

Conclusion

In my opinion, the only way this could work is if one of these companies merged with a major Chinese electric vehicle manufacturer. That could bring the innovation and speed needed to compete with Tesla. But merging three companies that are still operating like it’s 20 years ago is unlikely to make them competitive in the modern EV market.

What do you think? Is this the start of Japan’s EV comeback, or is it game over? Drop your thoughts in the comments.