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:
- Margin Pressure: Mexican production is Nissan’s most profitable
- Brand Risk: Infiniti accounts for 18% of North American profits
- 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
