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 ...
I’m willing to pay up to $5
Total
They will take a big loss but it looks like they already wrote most of it off. Brand new Tesla model 3s are now about 30% cheaper new than Hertz paid for theirs, which are now well used, and the current models have all the latest features. Maybe Hertz’ fleet is full self drive capable I’m not sure. But the body style has been updated for 2024. So you’re buying a used, many-driver rental car with all the dents and scratches and wear and tear used cars get inside and out (luggage marks etc) that is out of style and with questionable battery life. They will have to dump them I would guess either sub $20k or be willing to wait for the buyers. They could probably wait a bit, if they already wrote them down… they have plenty of parking spaces.
I would never buy a used electric car.
I don’t think I would ever buy a new one either.
Yes
Hertz’s EV fleet lost so far $440 million as no one will even rent the electric cars!
They have 60,000 electric vehicles or more.
The losses are just for 30,000 of them so much more losses to come.
https://finance.yahoo.com/news/hertz-loses-another-200-million-from-its-evs-172735716.html
Gas car prices are much much higher to subsidize electric vehicles. Remember obama and Biden program of used cars being bought then destroyed which raised the rest of the used car prices way up.
Ford lost $132,000 on each electric vehicle it sold in the first quarter 2024
https://justthenews.com/politics-policy/energy/ford-lost-132000-each-electric-vehicle-it-sold-first-quarter-2024
The now-former CEO Stephen Scheer has a liberal arts and a law degree but no technical background which explains this insane decision to invest in EVs.
This lack of technical understanding has caused problems in a lot of other large companies, like Boeing.
“this insane decision to invest in EVs.”
It wasn’t his money.
Who would buy a used EV from these guys?
From anybody?
Hertz model 3 are not FSD they have active cruise, land center, stop and go follow mode and brake hold if you are the first car in the traffic line. The model S have hands free on some freeways but also no FSD most people have no clue how to use it safely so hertz never paid for it due to insurance reasons. I have rented at least 20 EVs from hertz in Houston, Las Vegas , East Coast, Seattle , L.A. And New Orleans. The driving tech is still light years ahead of anyone else. Never had a need for a supercharger in a major city and most times after a week of use I never needed a charge since the total miles was less than 200 for the week I turned it in and paid the ten bucks fee to turn it in under 70% SOC. Rentals in a city are for the 5 miles to and from the convention Center and for dinner and nightlife runs those never exceed 300 miles in a week. The times I needed a SC was taking a model S from L.A..to Vegas or New Orleans to Biloxi then too Houston the car plots the course for you only an idiot would not be able to push the reserve button and habe a spot when the car says stop here along the way for 15 minutes while you piss and drink a pint.
Buying a used car from a rental place is foolish, buying an electric used car from a rental place is idiocy.
The sad truth is electric cars spit out way more tire pollution, which is very hazardous to humans. That’s the real catch that will sink this trend.
This is a golden opportunity for a certain FReeper who constantly advocates for EV ownership but doesn’t own one himself.
Who in their right mind would want to rent an EV in a strange city during their travels, especially a large blue one filled with danger? Run the battery down and no convenient place to charge it.
Rent a gas powered buggy and gas up anywhere with zero chance of a mechanical failure
“Ford lost $132,000 on each electric vehicle it sold in the first quarter 2024”
so true!!
You would be buying a $5 POS.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.