Former Chrysler CEO Bob Nardelli spoke about the government’s push for EVs, claiming that most startups are failing.
Hertz announced Thursday that the rental car giant’s investment fell through. Electric car Fleet continues to be a costly mistake, with the company reporting an additional $195 million in depreciation losses last quarter as it wrote off the remaining EVs it held for sale.
The company’s total loss was $588 million, exceeding Wall Street expectations. The stock price fell more than 24% on Thursday on the news. Stocks pared some losses on Friday.
The company’s total loss was $588 million, exceeding Wall Street expectations. (Reuters/Stephane Mahe/File Photo/Reuters Photo)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| HTZ | hearts global | 4.51 | -0.17 | -3.53% |
Hearts Global Holdings Co., Ltd.
Last quarter, Hertz announced its biggest quarterly loss since 2020 after deciding to pivot away from EVs.
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Hertz is betting big on EVs in 2021, announcing it will invest in acquiring 100,000 Teslas to help build electric vehicles. The company’s EV vehicle. But the car rental company reversed course earlier this year due to weak customer demand, saying it would unload tens of thousands of EVs and switch back to gas-powered vehicles.
A Summit White 2023 Chevrolet Bolt EV and a Gray Ghost Metallic 2023 Chevrolet Bolt EUV are parked in front of a Hertz rental location in Michigan. (General Motors/FOX News)
The company announced Friday that it plans to sell 10,000 more EVs, bringing total sales this year to 30,000. Rising repair costs also put pressure on the company’s overall vehicle maintenance costs.
Musk says Tesla’s affordable EV will arrive next year
“Fleet costs and direct operating costs weighed on our results in the quarter,” said Hertz CEO Gil West, who took the top job earlier this month following the resignation of Stephen Sher. Stated.
Cars exiting the empty rental car area at the Hertz Rental Car parking lot at Miami International Airport (Kike Calbo/Universal Images Group via Getty Images/Getty Images)
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Excluding items, Hertz reported a loss of $1.28 per share, well above Wall Street expectations of a loss of 44 cents per share.
FOX Business’ Aislinn Murphey and Reuters contributed to this report.
