'Hertz To Sell Off Even More EVs As Depreciation Losses Mount' - InsideEVs
Portfolio Pulse from Benzinga Newsdesk
Hertz plans to sell an additional 10,000 EVs in 2024 due to significant depreciation losses, totaling 30,000 EV sales. The company faced a $195 million charge to vehicle depreciation, with depreciation costs up $339 per vehicle, $119 of which is attributed to EVs. Despite a 2% revenue increase to $2.1 billion in Q1, Hertz reported $567 million in quarterly losses, largely due to depreciation costs. The sale includes models from Chevrolet, Kia, Mercedes, and Tesla at competitive prices.
April 26, 2024 | 2:53 pm
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Hertz plans to offload an additional 10,000 EVs in 2024, facing a $195 million depreciation charge, with overall depreciation costs up $339 per vehicle. Despite a slight revenue increase, the company reported significant quarterly losses of $567 million, largely due to EV depreciation.
The decision to sell an additional 10,000 EVs in 2024 is a direct response to the financial strain caused by significant depreciation losses on Hertz's EV fleet. The $195 million depreciation charge and the reported $567 million in quarterly losses highlight the financial challenges faced by Hertz, likely leading to negative investor sentiment and potential short-term stock price pressure.
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