"Hertz To Sell 20,000 EVs In Shift Back To Gas-Powered Cars" - Bloomberg Law
Portfolio Pulse from Benzinga Newsdesk
Hertz Global Holdings Inc. is selling a third of its US electric vehicle fleet, amounting to 20,000 EVs, and shifting back to gas-powered cars. This decision is driven by weak demand and high repair costs for EVs. The sales started last month and will extend into 2024. Hertz will take a non-cash charge of approximately $245 million in Q4 for net depreciation expense. This move is a reversal from their 2021 announcement to purchase 100,000 Tesla vehicles.
January 11, 2024 | 2:38 pm
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NEGATIVE IMPACT
Hertz plans to sell 20,000 EVs and revert to gas-powered cars, citing weak demand and high costs, with a $245M Q4 charge expected.
The sale of a significant portion of Hertz's EV fleet and the associated non-cash charge of $245 million could negatively impact investor sentiment in the short term, reflecting potential concerns over the company's strategic direction and the profitability of its EV investments.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Hertz's reversal from its 2021 plan to buy 100,000 Tesla vehicles may indicate a reduced partnership or future purchases from Tesla, potentially affecting Tesla's sales.
Hertz's decision to sell off EVs and pivot back to gas-powered vehicles may suggest a decrease in future purchases from Tesla, which could have a negative impact on Tesla's future revenue from fleet sales to rental companies.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70