
Hold onto your seats, because Hertz’s latest move is shaking the very foundations of the car rental and EV industries.
In a sensational about-face, Hertz is offloading an ASTOUNDING one-third of its electric vehicle (EV) fleet.
This isn’t just any fleet – we’re talking about the Tesla-dominated lineup that once seemed to herald a new era for electric mobility.
But wait, there’s more! Hertz isn’t just backing away from EVs, they’re diving headfirst back into the arms of internal-combustion-engine vehicles.
This bombshell move isn’t just a narrative twist, it’s a financial earthquake.
Here’s where it gets really juicy: Hertz’s great EV exodus is more than just a change in vehicle preference – it’s a financial survival strategy.
The company is grappling with weaker demand for electric rentals and sky-high associated costs.
But the plot thickens with their financial forecast that’s turning heads and dropping jaws.
In a bold move, Hertz plans to use the proceeds from this colossal EV sale not just to buy gas-powered cars, but also to navigate a tough financial landscape.
They’re staring down the barrel of a projected $120 to $130 million hole in their earnings before interest, taxes, depreciation, and amortization (Ebitda).
This isn’t just pocket change – it’s a financial SOS!
And there’s a twist in their revenue tale too.
Hertz is expecting a revenue of $2.1 to $2.2 billion for the quarter ending Dec. 31, a slight uptick from the previous year.
But let’s not pop the champagne yet – analysts had their sights set on a $2.19 billion revenue.
This move by Hertz isn’t just a business decision, it’s a financial rollercoaster, sending shockwaves through the market.
It raises the billion-dollar question: Is the EV dream fading into a financial nightmare?
Keep your eyes peeled as this high-stakes drama unfolds.