Hertz Freezes Polestar EV Purchases In Wake Of Fleet Restructuring
Portfolio Pulse from Anan Ashraf
Hertz Global Holdings Inc (NASDAQ:HTZ) has paused its procurement of Polestar vehicles amid a fleet restructuring, aiming to downsize its EV fleet. The decision follows an agreement with Polestar to waive Hertz's purchase requirements for 2024, with Hertz committing not to sell its existing Polestar EVs prematurely. The partnership, announced in 2022, initially involved Hertz purchasing up to 65,000 EVs from Polestar over five years. However, due to higher repair costs for EVs, Hertz is scaling back its EV fleet, affecting its timeline for achieving a 25% electric fleet by the end of 2024. Hertz has begun selling Tesla vehicles from its fleet, with plans to sell about 20,000 EVs this year. Following the news, Polestar's shares fell 7.3%, and Hertz's shares dropped 5.6%.
February 06, 2024 | 5:17 am
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NEGATIVE IMPACT
Hertz has paused its procurement of Polestar vehicles and is scaling back its EV fleet, affecting its stock price.
The decision to pause Polestar EV purchases and scale back the EV fleet likely contributed to investor concerns about Hertz's growth in the EV market, leading to a decrease in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Polestar's shares dropped 7.3% following Hertz's decision to pause vehicle procurement amid its EV fleet restructuring.
The news of Hertz pausing its procurement of Polestar vehicles likely led to negative investor sentiment towards Polestar, resulting in a significant drop in its stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85