Nissan Motor Co. (NSANF) plans to build a new battery factory in the U.S. as part of an $18 billion electric vehicle (EV) investment drive. Reuters reports the automaker intends to invest $500 million to retool its assembly plant near Canton, Mississippi. NSANF shares fell 1.78% to close at $5.25 on February 17.
Nissan is a Japanese company that designs, manufactures, and sells automotive products and marine equipment. It operates through the Automobile and Sales segments.
Nissan’s EV Push
Nissan plans to assemble EVs in Mississippi as early as 2025. The $18 billion investment drive seeks to ensure EVs account for 40% of the Japanese automaker’s car sales in the U.S. by 2030.
The building of a new battery factory should help support and accelerate the development of EVs. The company currently has two assembly lines in Canton; one to produce light trucks and another for developing Altima mid-sized sedans.
Nissan plans to redesign the Altima assembly line to build electric and combustion vehicles. Part of the Canton factory will be redesigned for battery pack assembly. It also plans to spend a significant amount to upskill the workforce at the Canton complex, which currently employs 5,000 people.
Nissan’s Chief Operating Officer Ashwani Gupta has also confirmed investment plans for its Mexican operations. The company intends to deliver up to 23 new electric cars by 2030, including 15 battery-electric models.
Last month, Nomura analyst Masataka Kunugimoto reiterated a Buy rating on Nissan stock with a $7.19 price target, implying 36.91% upside potential to current levels.
Consensus among analysts is a Hold based on 2 Buys, 1 Hold, and 1 Sell. The average Nissan price target of $7.06 implies 34.48% upside potential to current levels.
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