Nissan Shares Drop 4% as Infiniti Order Freeze Sparks Analyst Downgrades

Nissan’s stock (7201.T) suffered its worst day in three months following the Infiniti order suspension, with analysts slashing price targets amid profitability concerns:

Market Reaction:

• Immediate 4.2% share price drop in Tokyo trading
• $1.8B market cap wiped out
• 6 analyst downgrades within hours

Key Concerns:

1. Margin Pressure: Mexican production is Nissan’s most profitable
2. Brand Risk: Infiniti accounts for 18% of North American profits
3. Execution Risk: US production shift could take 18 months

“Every week of suspended orders costs Nissan $45M in lost profits,” estimated Bernstein analyst Max Warburton.

Industry Contagion:

• Toyota shares down 1.8% on similar fears
• Auto parts suppliers (MAGNA, LEAR) dropping 3-5%
• Used Infiniti values rising 2% immediately