Posted on 04/25/2024 10:33:07 PM PDT by SeekAndFind
Hertz raised the number of electric vehicles it plans to sell this year as it is cutting its EV fleet to reduce losses that have weighed on the car rental giant’s earnings.
In the first quarter, Hertz upsized its EV disposition plan by 10,000 vehicles, for a total of 30,000 EVs intended for sale in 2024. Most of these EVs will be Teslas.
The company incurred a $195 million charge to vehicle depreciation to write down the EVs held for sale which were remaining in inventory at quarter-end to fair value and recognize the disposition losses on EVs sold in the period, Hertz said in a statement on Thursday
Vehicle depreciation in the first quarter of 2024 increased by $588 million, or $339 on a per unit basis. Of the $339 per unit increase, $119 was related to EVs held for sale, the company said. [if !supportLineBreakNewLine] [endif]
Hertz reported a much larger loss for the first quarter than analysts had forecast. Adjusted net loss stood at $392 million, or $1.28 loss per diluted share.
This compares with an analyst consensus estimate of a loss of $0.45 per share.
Following the earnings release on Thursday, Hertz’s stock crashed by 21% on the NASDAQ but ended off the lows, still down 19%...
Hertz was an early mover in buying EVs to rent to customers, but it and other car rental companies have recently started to sell the EVs they had previously purchased due to weaker customer demand for EV rentals.
Hertz, unlike other rental firms, has a more risky approach because it fully owns all the EVs it has bought and is losing money if the resale value slumps.
As it did.
(Excerpt) Read more at oilprice.com ...
If I rent a car for business it is for a trip to a destination at least 200 miles away.
That is just brutal. No way that guy lived.
“I’m willing to pay up to $5
Total”
For the entire company. (H/T Maha Rushie - “Newsweek for a dollar”).
For a business traveler that has appointments to keep, potential of getting lost, possible inability or time spent finding a place to charge the batteries, etc - would you really want to add another layer of complexity or risk? Maybe if your client is an eco nut and will appreciate the woke symbolism?
With a gas rental I have to return the vehicle with a full tank or pay a slight premium for it to be refilled. What’s the deal with electric? Do I wait around for the car to recharge?
Note, I don’t hate EV’s it’s just not practical for me use case.
As someone posted earlier you return the car without charging and pay the recharge fee if required.. Fees vary. Hertz seems to be $35. If it is a business expense who cares? That said, I would never rent one..
What do the charge to get rid of the battery?
“You would be buying a $5 POS.”
That you would then need to insure!
Ouch.
You assume normal market forces will be allowed to run their course. If the rats keep control ICE cars will be regulated off the roads. Once Ca, NY and Illinois ban them they will be effectively killed because the car manufacturers will not make cars they can’t sell in the largest markets.
Illinois is cheerleading and pushing for EVs, but haven’t announced any bans on new ICE vehicles sales yet. I think it is unlikely they will. Doing so would put Illinois back in red state status.
Tough year for Hertz, what with losing OJ and now this.
LMAO.
Hertz, unlike other rental firms, has a more risky approach because it fully owns all the EVs it has bought and is losing money if the resale value slumps.
But...........................
Banks have to build new and bigger buildings because if they don’t customer don’t come.
Farmers have to buy new and bigger equipment or the land owners won’t rent to them.
Churches have to build new buildings or everyone thinks they are a fail church.
My economic indicator is when the last new church, bank and school gets built, we are going down the tubes. But it will be in hindsight.
They’ll make the loses by volume. Simple Bidenomics. Like everything else we’re expected to ignore reality and common sense. Pay no attention to the rising cost of all things.
INBEFORE
Electric cars aren’t bad - really. They’re fine. If you drive a golf cart in the Villages, in a New Hampshire winter you’re going to want a Tesla.
BUT
The idea of a universal implementation is ABSURD, a manifestation of increasing stupidity and currying of favor in a dying empire, that Putin correctly called the Empire of Lies (the truth hurts).
NO, they can’t mandate electric cars. NO, the infrastructure to support universal EV will never be created. NO, the millions upon millions who park on the street in cities will never have an EV. NO, when it becomes clear that end-of-life comes early and resale value approaches zero, commercial loans will no longer exist.
Look, if it meets your needs, by all means get one. They are cool toys, if nothing else.
But mandated for everyone? Idiocracy taking over - but you knew that.
Shocking move by Hertz /sarcasm
Scotty Kilmer says in one of his latest videos that a replacement battery under warranty from Tesla is actually a used battery. It was refurbished. He sited one person who bought a 2021 Tesla and is now on his 3rd refurbished battery.
That would be my estimation as well.
If my power tool batteries are any comparison...
I tend to only uber for DUI avoidance especially if hoping from restaurant to jazz club to night club. Where parking will be an issue at each. Otherwise it’s drive up valet at dinner and back to the airbnb.
I have taken a model S from L.A.to Vegas and from New Orleans to Biloxi then too Houston. Along the interstates Tesla has put suoerchargers about every 50 miles the car prompts you to go to one and offers a reservation in the touch screen. The tech is what I was after you can go hands free on the interstates like Romco set it and forget it.
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