Another Blow To Tesla? Hertz's EV Disposal Plan Jumps By 10K As Car-Rental Company Aims For 95% Gas-Powered Fleet By Year-End
Portfolio Pulse from Anan Ashraf
Hertz Global Holdings (NASDAQ:HTZ) plans to remove 30,000 electric vehicles from its fleet, up from an earlier plan of 20,000, due to high repair costs. This adjustment aims to align the fleet with demand, especially for rideshare, and reduce operating costs. Hertz reported a Q1 adjusted loss of $1.28 per share, significantly missing analyst expectations. Following the announcement, HTZ stock dropped 19.3%, contributing to a 54.1% decline year-to-date.
April 26, 2024 | 8:46 am
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Hertz plans to significantly reduce its EV fleet, aiming for a 95% gas-powered fleet, after reporting a larger-than-expected Q1 loss.
Hertz's decision to increase the disposal of its EV fleet by 10,000 units, aiming for a 95% gas-powered fleet, reflects a strategic shift due to high repair costs and operational challenges. This move, coupled with a significant Q1 loss that missed analyst expectations, has negatively impacted investor sentiment, as evidenced by a 19.3% drop in HTZ stock. The stock's year-to-date decline of 54.1% further underscores the market's reaction to these challenges and strategic adjustments.
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