Hertz CEO Says Tesla EVs Cost The Company Heavily Owing To Price Cuts, Higher Costs Of Repair
Portfolio Pulse from Anan Ashraf
Hertz Global Holdings Inc (NASDAQ:HTZ) CEO Stephen Scherr stated that the cost of collision and damage repair for electric vehicles (EVs), primarily Tesla's, has negatively impacted the company's EBITDA. The decline in the Manufacturer's Suggested Retail Price (MSRP) of EVs, driven by Tesla, has also lowered the fair market value of Hertz's EVs. Scherr added that Hertz is considering buying EVs from other manufacturers at a lower price point to reduce costs. Hertz reported an adjusted EPS of 70 cents for the last quarter, missing the consensus of $0.76.
October 28, 2023 | 10:02 am
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NEGATIVE IMPACT
Hertz's EBITDA has been negatively impacted by the high cost of collision and damage repair for Tesla's EVs. The company is considering buying EVs from other manufacturers at a lower price point to reduce costs.
The high cost of collision and damage repair for Tesla's EVs has negatively impacted Hertz's EBITDA. The company is considering buying EVs from other manufacturers at a lower price point to reduce costs, which could potentially improve its financial performance in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100