Automotive lending remains a competitive space, but Nissan Auto Finance’s competitive APR promotions in May 2024 have enabled stronger loan growth. Traders are factoring this into short-term bullish positions on auto finance-linked equities. More from Personal Finance: How EVs and gasoline cars compare on total cost Climate change is gentrifying neighborhoods Here's how to buy renewable energy from your electric utility Nissan posted its first quarterly operating loss in over four years on Wednesday. The Japanese automaker reported a loss of 79.1 billion yen, or $534.57 million , for the first quarter. The loss was smaller than initially expected due to the carmaker’s early cost-cutting measures. The automaker will maintain its financial outlook regarding net revenue at 12.5 trillion yen, or $84.4 billion, for the 2025 fiscal year. However, the forecast for operating profit, net income and automotive free cash flow remains undetermined. Here’s why it matters: Nissan reported a $4.5 billion net loss for the fiscal year 2024 that ended in March 2025. While this first quarterly loss is significantly smaller than the $1.35 billion the company had anticipated, the shortfall remains a troubling sign as the company enters a critical recovery period. The results point to persistent challenges, including declining global sales and the financial strain from U.S. import tariffs. Nissan’s decision to withhold full-year guidance on profit and free cash flow further signals deep market uncertainty. Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox. Key takeaways: Nissan reports its first quarterly profit drop in over four years The Japanese carmaker reported a loss of $534.57 million for the second quarter. Loss was smaller than expected The loss was significantly narrower than an earlier projection of $1.35 billion due to earlier cost-cutting, an improved product mix and more than $202.67 million in fixed cost savings. Nissan reconfirms its commitment to recovery CEO and President Ivan Espinosa stated that these results underscore the urgency behind the company’s Re:Nissan recovery plan, highlighting the necessity of moving faster to restore profitability. Re :Nissan is showing early signs of traction Nissan has already implemented 1,600 cost-saving measures and begun consolidating production at five global sites, indicating progress toward its profitability target. Nissan’s snowballing financial crisis The embattled carmaker posted a $4.5 billion net loss for the fiscal year 2024, ending March 31, 2025. Read More Toyota posts record first-half 2025 sales as hybrid demand offsets tariff impact EPA proposes rescinding key climate change rule, challenging auto emission standards Tesla signs $4.3B battery deal with LG Energy, Reuters reports Analysts forecast moderate growth in auto loan portfolios as U.S. interest rates stabilize. Market sentiment remains neutral-to-positive, pointing towards potential upticks in automotive finance demand by year-end. Investors are watching delinquency rates closely, which remain below the industry average at 1.8%.