Nissan Motor shares fell more than 10%, the biggest drop since 2021, as profits fell short of expectations

Nissan Motor Co. fell as much as 10.4% in early trading on Friday, its biggest drop since May 2021, after third-quarter profit fell short of expectations. The Japanese automaker on Thursday also lowered its global sales target to 3.55 million units from 3.7 million units as competition intensifies, lower than the 4 million unit target announced at the beginning of the year.

Nissan reported operating profit of 141.6 billion yen ($948 million) for the three months ended December 31, below market expectations of 172.8 billion yen.

Nissan's chief financial officer said on Thursday that Nissan's cooperation project with Renault SA is still proceeding as planned despite Renault's decision to cancel the IPO of its electric vehicle unit Ampere.

One of Nissan's highlights has been its hybrid vehicles, which have seen a rebound in demand in recent months as demand for electric vehicles has fluctuated.