Posted 2/9/2024, 2:17:00 AM
Nissan Shares Plunge 12% on Weak Earnings and Gloomy China Sales Outlook
- Nissan shares tumbled 12%, their biggest decline in over 20 years, after weak quarterly earnings and lowered sales forecasts due to increasing competition in China
- Nissan is seen as the most vulnerable foreign automaker in China compared to Toyota and Honda due to less brand equity and aggressive local rivals
- The sales outlook cut erased $1.8 billion in Nissan's market value; operating profit was 20% below expectations
- Competition is forcing overseas automakers to cut prices in China, raising concerns over zero-margin business
- Nissan aims to boost China sales by targeting areas with slower EV adoption after seeing some recovery in Q4