Nissan Recalls 480,000 Vehicles Amid Stock Surge
Nissan Motor Co. announced a sweeping recall of over 480,000 vehicles in North America due to potentially catastrophic engine failures. The recall affects 2019-2024 models with specific turbocharged engines, including popular Altima sedans and Rogue SUVs. Bearings in the 1.5L and 2.0L engines may fail without warning, causing sudden loss of power while driving.
Despite the serious safety implications, Nissan's American depositary receipts (NSANY) rallied nearly 6% to $5.03 on July 3. The stock's performance defied conventional wisdom, opening at $4.99 and peaking at $5.06 during the session. Market capitalization grew significantly despite the recall's potential $200 million repair cost.
The disconnect between operational challenges and investor enthusiasm reflects broader market dynamics. Automotive recalls have become routine in an industry grappling with complex supply chains and accelerated production timelines. Investors appear focused on Nissan's electric vehicle roadmap rather than legacy combustion engine issues.