Tesla Weighs Investment in Nissan

FINANCE
Tesla Weighs Investment in Nissan

Nissan’s shares surged after reports suggested a Japanese investment group is seeking backing from Tesla to aid the struggling automaker. The proposal, led by former Tesla board member Hiromichi Mizuno and supported by ex-Prime Minister Yoshihide Suga, envisions Tesla acquiring Nissan’s U.S. plants or taking a minority stake alongside Foxconn to prevent a full takeover.

Despite a 9.5% stock jump, industry analysts remain skeptical. Tesla, facing slowing EV demand and recent layoffs, typically invests in high-tech ventures rather than legacy carmakers. Nissan’s U.S. factories, including its Mississippi EV plant, may not align with Tesla’s goals.

Nissan, reeling from a failed merger with Honda, continues searching for partners. Foxconn and KKR & Co. are reportedly interested. Meanwhile, Moody’s downgraded Nissan’s credit rating, citing ongoing restructuring risks. Musk’s cryptic X post on Tesla’s “Cybercab production line” leaves open-ended questions about Tesla’s actual interest in Nissan.

FINANCE
Berkshire’s Cash Pile Hits $334B

Warren Buffett’s Berkshire Hathaway continues to amass cash, reaching $334.2 billion in Q4, nearly doubling from last year’s $167.6 billion. Despite selling stakes in Apple, Bank of America, and Citigroup, Buffett reaffirmed his commitment to investing rather than holding cash. Berkshire’s stock portfolio has shrunk to $272 billion from $354 billion, but Buffett maintains that equities, particularly American ones, remain the company’s focus.

Buffett has avoided major acquisitions in recent years due to high valuations but emphasized that Berkshire will always prioritize strong businesses over cash. He reiterated that Berkshire won’t pay dividends and warned about the risks of fixed bonds and inflation eroding cash value.

Comparisons have been drawn to Buffett’s strategy before the dotcom bubble burst when he stayed on the sidelines. While he refrained from market predictions, he assured shareholders that Berkshire’s investment philosophy remains unchanged: betting on the long-term success of American businesses.

TECH
Meta Boosts Executive Bonuses to 200%

Meta has approved a major executive bonus increase, allowing top executives to earn up to 200% of their salaries, up from 75%. This change, effective in 2025, excludes CEO Mark Zuckerberg and aims to align Meta’s compensation with industry standards. The company stated the bonuses will incentivize executives to focus on key priorities.

The decision comes just a week after Meta laid off 3,600 employees, about 5% of its workforce, citing “low performance.” However, some affected workers disputed this claim, saying they received strong reviews. Workplace experts have warned the term "low performer" is subjective and could be unfairly applied.

Despite layoffs, Meta reported a strong Q4 2024, with revenue surging 21% year-over-year to $48.4 billion. Zuckerberg emphasized 2025 as a crucial year for AI development, with plans to make Meta’s AI assistant the most widely used in the industry. Microsoft is also targeting low performers in its latest job cuts.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.