Earlier this week, Honda Motor and Nissan confirmed they are in talks about a possible merger at time of auto industry upheaval. Toyota stock cleared a key level on Friday. Honda stock rallied further above a technical level,

A potential merger of Honda and Nissan, and its alliance partners Mitsubishi and Renault SA, could create a new manufacturer worth $79.9 billion, producing 8 million cars a year.

The rumored Honda-Nissan merger is viewed as a strategic step to increase sales and take on Toyota, Tesla, and BYD in the fast-growing electric vehicle (EV) space. The speculation gained traction earlier this year when both companies showed interest in looking into a strategic partnership for EVs.

Both Toyota and Honda posted quarterly profit declines in November, amid challenges in critical global markets, including the U.S. Japan and China. Reported Toyota ROE Target. On