On Thursday, Hertz Global shares plummeted by 24%, marking the sharpest one-day percentage drop in the company’s history. The drop came after Hertz reported a quarterly loss that was wider than expected, which underscored the challenges faced by the company in the EV rental business. Despite plans to streamline its operations and sell 10,000 more EVs, bringing the total planned sales for the year to 300,000, Hertz faced higher repair costs which added to fleet maintenance expenses.
Hertz CEO Gil West noted that fleet and direct operating costs were key factors impacting the company’s performance in the quarter. Excluding certain items, Hertz reported a loss of $1.28 per share, significantly higher than Wall Street’s expected loss of 44 cents per share. This disappointing news led to a 7% drop in shares for peer company Avis Budget Group. Both companies have seen their market value decrease by approximately half since the beginning of the year. These challenges highlight ongoing struggles faced by companies in the rental car industry as they navigate changing market dynamics and operational costs.
