Nissan Shares Drop Over 6% as Mercedes-Benz Prepares Full Exit

Mercedes-Benz to Offload Entire Nissan Stake

Nissan Motor shares in Tokyo tumbled on Tuesday after Mercedes-Benz announced plans to sell its 3.8% stake in the Japanese carmaker.
The stock fell as much as 6.7% before trimming losses to around 6% lower.

Deal Value and Strategic Rationale

A company spokesperson confirmed the stake—worth about $346 million—will be sold through Mercedes-Benz’s pension trust. The spokesperson emphasized that Nissan shares, moved to pension assets in 2016, are non-strategic, framing the sale as a portfolio streamlining measure.

Impact on Nissan and Market Context

The move adds pressure on Nissan stock, already hit by:

U.S. auto tariffs

Weak global sales

Intensified EV competition, particularly from Chinese automakers.

Failed Alliance Talks and Restructuring Plans

Nissan held short-lived talks with Honda last year to create the world’s third-largest automaker, but negotiations collapsed in February.
In May, the company announced plans to cut 11,000 jobs and close seven plants, as part of its restructuring roadmap.

Tariff Relief Brings Limited Support

In July, U.S. auto tariffs were reduced from 25% to 15%, offering partial relief for Japanese automakers, including Nissan.

Stock Performance and Outlook

Nissan shares have plunged over 29% year-to-date, signaling ongoing challenges amid a highly competitive market environment.

📌 Investor Notes

Mercedes-Benz’s exit suggests waning confidence in Nissan’s long-term recovery strategy.

Persistent headwinds include EV transition costs and U.S. tariff volatility, despite recent policy relief.

Investors should closely monitor Nissan’s restructuring progress, potential strategic alliances, and cost-cutting measures.

While the sharp decline could present a long-term buying opportunity, risks remain elevated due to global economic uncertainty and weak fundamentals.