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.

Following the end of talks between Nissan and Honda, Moody’s has downgraded the struggling automaker’s debt rating to junk status. The financial research firm also revealed a negative outlook for the future.

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.

Uchida had been one of the strongest advocates within Nissan for a deal with Honda. However, relations between Uchida and his counterpart Toshihiro Mibe deteriorated as Honda became frustrated with the speed of Nissan’s restructuring and the depth of its financial troubles.

A big electronics company wants to get into cars, and might have a deal with Nissan. The collapse of the proposed merger between Nissan and Honda opens the door for Foxconn to reenter the equation and resume its talks with Nissan.