A high-level Japanese group that includes a former prime minister has drawn up plans for Tesla to invest in Nissan after the collapse of its merger talks with Honda , the Financial Times said on Friday.

Hon Hai, better known as Foxconn, had shown interest in buying into Nissan even before the merger talks had begun, in a bid to pave the way for the EV business expansion that Foxconn has positioned as its next growth engine after smartphone assembly.

The rumored collapse of merger talks between Honda and Nissan amidst the EV industry's transformation has thrust Foxconn into the spotlight as it continues to explore partnerships with Nissan and Renault.