Nissan and Honda Merged to Compete with Tesla

Nissan and Honda Merged to Compete with Tesla

Nissan and Honda announced that they will work together to develop electric vehicles and artificial intelligence technology.

Recently, electric cars have become very popular and many brands have started to establish partnerships.

Automakers are focusing on electric vehicles rather than gasoline- or diesel-powered vehicles as concerns about carbon emissions and climate change grow.

Top managers of Japan's leading automotive companies Nissan Motor and Honda Motor came together at a press conference in Tokyo.

Executives announced that they started negotiations for cooperation in automobile production and the use of artificial intelligence in vehicles.

With the meeting announcement, Honda and Nissan shares rose on the Tokyo stock exchange.

The Japanese have lagged behind some of the world's strongest electric car-making rivals, such as Tesla, in part because they have historically been so successful with internal combustion engine products.

While Chinese companies, especially BYD, have a great advantage in the electric car market, Japanese companies have a hard time competing with their Chinese rivals and the US Tesla.

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