Nissan Motor Co., once a pioneer in electric vehicles with the Leaf, reported a staggering $4.5 billion net loss for fiscal 2024, its worst financial performance in 25 years, prompting a drastic restructuring plan. Bloomberg reported that the Japanese automaker is grappling with an outdated lineup, declining U.S. sales, and looming tariffs, raising questions about its ability to compete in the fast-evolving EV market.

Financial Struggles and Restructuring

Nissan’s fiscal 2024 was dire: global retail sales fell 2.8%, operating margins dropped from 4.5% to under 1%, and free cash flow turned negative. The company posted a net loss of ¥670.9 billion ($4.5 billion), a stark contrast to its near-bankruptcy rescue by Renault a quarter-century ago. To stem losses, Nissan plans to close seven factories by 2027, cutting production capacity from 3.5 million to 2.5 million vehicles annually, and eliminate 20,000 jobs globally, including 9,000 announced last November. “Fixed costs remain higher than current revenue can support,” Nissan stated in its investor presentation, underscoring the need for ¥500 billion ($3.4 billion) in cost reductions over three years by streamlining engineering, supply chains, and factory utilization.

EV Missteps and Market Challenges

Nissan’s early lead with the Leaf, the world’s first mass-market EV, has eroded. The Leaf’s limited range and reliance on the CHAdeMO charging standard, bypassed by Tesla and BYD’s systems, have made it obsolete. Competitors offer better acceleration, range, and tech, while U.S. buyers lean toward hybrids—a market Nissan neglected by focusing on hybrids too late. The Ariya, Nissan’s next-generation EV, launched in the U.S. in late 2023, just as EV demand weakened. Plans for two new U.S.-made battery-electric models, originally set for 2025, are delayed to at least 2027. In the U.S., Nissan’s largest market, sales of its Rogue SUV dropped nearly 10% in 2024, worsened by an aging lineup and price cuts to clear inventory.

Nissan’s $4.5 Billion Loss Signals Tough Road Ahead For Ev Strategy

Industry Trends and Tariff Threats

Nissan’s challenges mirror EV industry shifts. Chinese manufacturers like BYD dominate with feature-rich, affordable models, while U.S. hybrid demand grows, led by Toyota’s Prius legacy. President Trump’s tariffs on imported vehicles, which account for nearly half of Nissan’s U.S. sales, threaten further strain. Shifting production of profitable SUVs to Japan exposed Nissan to these tariffs, deepening losses. Failed merger talks with Honda in February 2025, aimed at scaling up against Chinese EV giants, left Nissan seeking partners, with interest from Taiwan’s Foxconn and U.S. tech firms.

Implications for EV Enthusiasts

For EV owners and enthusiasts, Nissan’s struggles mean delays in innovative, competitive models. The Leaf’s shortcomings and Ariya’s late entry highlight Nissan’s slow adaptation, potentially limiting affordable EV options. Cost-cutting and factory optimizations aim to fund EV development, but tariffs and regulatory pressures may increase prices, affecting buyers. Nissan’s pursuit of new alliances could yield advanced battery and software tech if partnerships succeed, but swift action is critical to stay competitive.

Nissan’s restructuring is a bold step, but its EV future depends on delivering next-generation models and navigating trade barriers. Without rapid progress, Nissan risks falling further behind in the electrified race.