After kicking off discussions on Monday, Honda and Nissan said they plan to provide more details on Mitsubishi’s involvement around the end of January 2025. The EV merger is expected to be official by August 2026.

Japanese automakers Honda and Nissan are in talks to merge to better compete with electric vehicle manufacturers like Tesla, BYD, and others. As reported by Nikkei Asia, the two have discussed signing a memorandum of understanding that outlines plans to split equity into a new holding company from which both will do business,

The two companies' stock prices initially rose on Tuesday following reports of merger discussions. Nissan shares on the New York Stock Exchange jumped from $4.56 to $5.15, and Honda shares increased from $25.03 to $25.26. However, as Nissan stock continued to rise Wednesday over $6, Honda stock dipped below $25.