Why is Nidec stock sliding today?
Nidec Corp's stock experienced a 3.0% decline, trading at ¥2,270 on Tuesday, as a governance crisis intensified. The company faces a critical juncture following the confirmed resignation of CEO and President Mitsuyasu Kishida and the potential impairment charge of ¥1 trillion ($6.2 billion) for the fiscal year ending March 2026.
The impairment relates to losses incurred by its e-axle electric vehicle traction motor business, which may significantly undermine the profits accumulated over the past decade. The board's decision to dismiss Kishida and the impending internal control filing deadline on the Tokyo Stock Exchange's Security on Special Alert list further complicate the situation.
Meanwhile, the broader Japanese market downturn, driven by increasing global bond yields and oil prices, adds to the negative pressure on Nidec's stock.
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