That deal—one branded "a desperate move" by former Nissan CEO and fugitive from Japanese justice Carlos Ghosn—fell apart last week after Renault demanded a price premium for its shares in Nissan, and Nissan demanded a merger of equals with Honda.

Japanese business leaders are reportedly urging Tesla CEO Elon Musk to step in as a strategic investor in Nissan after the company’s merger talks with rival Honda collapsed last week.

The Honda-Nissan on-again, off-again, on-again merger is the international automotive saga that keeps on giving. Now there's another twist.

Shares in the beleaguered Japanese carmaker surged on Friday despite Musk denying reports that Tesla could be a prospective investor.

Nissan stock surged but pared gains on reports the Japanese automaker had a new dance partner — Tesla. Whether a deal with the EV juggernaut makes sense is another story worth exploring.