Tesla Bulls At Odds After Hertz's EV Selloff: 'Blow' For Musk's Company Or 'Black Eye Moment' For Car Rental Firm?
Portfolio Pulse from Anan Ashraf
Hertz Global Holdings (HTZ) plans to sell about 20,000 EVs, including Teslas, from its U.S. fleet in 2024 due to high repair costs, aiming to replace them with combustion engine cars. This decision has divided Tesla (TSLA) supporters. Wedbush analyst Dan Ives sees it as a negative for Hertz but not significantly impacting Tesla, while investor Ross Gerber views it as a setback for Tesla, noting a $250 million loss for Hertz and potential after-market price reduction for Tesla vehicles.
January 12, 2024 | 8:38 am
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NEGATIVE IMPACT
Tesla's stock may face short-term pressure due to Hertz's sale of around 20,000 EVs, including Teslas, potentially affecting after-market prices, despite some analysts considering it a minor issue for Tesla.
While Wedbush analyst Dan Ives downplays the impact on Tesla, investor Ross Gerber highlights a potential devaluation of Tesla's after-market prices due to Hertz's sale. This could lead to short-term negative sentiment among investors, although the long-term effect may be limited.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Hertz's decision to sell 20,000 EVs, including Teslas, due to high repair costs and replace them with combustion engine vehicles may reflect a strategic pivot and could impact investor sentiment.
The sale of a significant portion of Hertz's EV fleet, including Teslas, is a major strategic decision that could influence investor perception of the company's future direction and profitability. However, the impact on the stock price is uncertain as the market may have mixed reactions to the shift towards combustion engine vehicles.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100