(Correct paragraph 2 to say total EV sales plan for this year is 30,000 units instead of 300,000 units)
(Reuters) – Hertz Global shares fell 24% on Thursday, their biggest single-day drop on record, after the company reported a better-than-expected quarterly loss and highlighted struggles in its EV rental business. It was on track to set a new record.
The company is scaling back its business due to weak demand, and plans to sell an additional 10,000 EVs, bringing the total sales this year to 30,000. Rising repair costs also put pressure on the company’s overall vehicle maintenance costs.
The Estero, Florida-based company said it had a $588 million impact on vehicle depreciation and amortization in the quarter, of which $195 million was related to EVs held for sale. Stated.
“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.
Excluding items, Hertz reported a loss of $1.28 per share, well above Wall Street expectations of a loss of 44 cents per share.
Shares of Peer Avis Budget Group fell 7%. Both Hertz and Avis have lost about half their market value this year. (This article has been amended to correct his total EV sales plan for this year to his 30,000 units instead of his 300,000 units in the second paragraph)
(Reporting by Medha Singh in Bengaluru; Additional reporting by Lance Tapper in New York; Editing by Anil D’Silva)
