Honda-Nissan Officially A Go, Tesla’s $1.5T Market Cap

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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Christmas week is officially here, but before we get to presents, we speculate on the future of Honda and Nissan, plus take a closer look at Tesla’s record market cap.

Show Notes with links:

• Honda and Nissan are set to create a unified holding company to strengthen their competitiveness amidst industry challenges. Set to launch by August 2026, the combined entity is predicted to generate over $181 billion in annual revenue and $19 billion in operating profit.
  • Honda will take the lead in the new company, nominating key executives and determining strategy.
  • Plans include advancements in EVs, software development, and sales financing, aiming for significant results by 2030.
  • Mitsubishi Motors will decide by January if they will join the partnership, adding strength in Southeast Asia and hybrid technology.
  • Honda CEO Toshihiro Mibe described the merger as critical artillery for competing by 2030, stating, “We have the potential to be a world-class, leading company in new mobility.”

• Tesla's valuation has soared to a new all-time high of $1.5 trillion following the 2024 U.S. presidential election, solidifying its dominance in the global automotive market.
  • Tesla accounts for nearly half of the global automotive market cap, exceeding the combined valuation of the next 29 automakers.
  • Key competitors like Toyota ($231 billion) and BYD ($107 billion) trail far behind.
  • Investors see Elon Musk’s close ties with President Trump as a potential boost, especially with anticipated corporate tax cuts.
  • Tesla’s stock is up 57% year-to-date, despite its production (1.8M vehicles in 2023) lagging far behind Toyota (11.2M vehicles).

Hosts: Paul J Daly and Kyle Mountsier
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