Hertz says it lost another $195M from EV bet | FOX Business

Hertz, the renowned rental car giant, faced a significant setback with its investment in an electric vehicle (EV) fleet. Last quarter, it revealed a staggering loss of $195 million in depreciation value from writing off the remaining EVs earmarked for sale. This loss exceeded Wall Street predictions, causing shares to plummet by over 24% on Thursday, though there was a slight recovery the following day.

This dismal performance echoes the trend from the prior quarter when Hertz disclosed its largest quarterly loss since 2020, a consequence of its strategic shift away from EVs. Initially, Hertz made headlines in 2021 by announcing plans to procure 100,000 Teslas, intending to spearhead its EV fleet. However, the company abruptly reversed course earlier this year due to insufficient customer demand, opting to shed tens of thousands of EVs instead of returning to gas-powered vehicles.

In the wake of these challenges, Hertz plans to offload an additional 10,000 EVs, bringing the total planned sales to 30,000 for the year. The company cited the tepid customer interest and mounting repair costs, which contributed to inflated fleet maintenance expenses.

As Gil West steps into the CEO role, succeeding Stephen Scherr, Hertz faces a pivotal moment. The repercussions of its failed EV investment underscore the complexities and risks inherent in business decisions, especially in emerging sectors like electric vehicles, where demand dynamics can swiftly change…………[read more]

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What factors might influence consumer preferences in the automotive industry, and how do businesses like Hertz navigate these evolving trends to optimize their investment strategies?

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Cindy

6 months ago

Businesses like Hertz navigate these evolving trends by closely monitoring consumer demands and adjusting their investment strategies accordingly. They may invest in expanding their fleet of hybrid and electric vehicles to meet the growing demand and provide customers with more sustainable transportation options. By staying up-to-date with market trends and understanding consumer preferences, businesses can optimize their investment strategies and cater to the changing needs of their customers.

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Anthony

6 months ago

Automobile preferences in consumer can change because of the car manufacturers and the feature it offers and one year a car can do good and the other it can do horrible it all depends on the trends the consumer has since they are the ones that run the market.