Hertz Shares Take a Hit After its Failed EV Experiment Burns $2.9B
Hertz pulled a hard left on EVs, and shareholders are bracing for impact. The rental giant reported a $2.9B loss in 2024, largely due to its ill-fated venture into electric vehicles that left customers cold and maintenance costs soaring. The company has now completed its dramatic fleet overhaul, selling off 30K EVs — many of them Teslas — in a bid to realign its fleet with more conventional vehicles that better align with consumer preferences.
- Q4 results disappointed Wall Street with an adjusted loss of $1.18 per share, significantly wider than analysts’ expected $0.73 loss — sending the stock tumbling 10% yesterday.
- Vehicle depreciation costs improved to $422 per unit monthly, down 16% from $501 last year, though still well above the historical norm of sub-$300.
Charging ahead with changes: CEO Gil West, who was recruited in Apr. 2024, is implementing a comprehensive transformation strategy expected to conclude by year-end. The company expects to hit the breaks on losses by year-end 2025, with CFO Scott Haralson projecting break-even adjusted EBITDA by Q2 2025, followed by a “sizable” profit in Q3. With 60% of its fleet now one year old or newer, Hertz is betting that conventional vehicles will drive it back to profitability by year-end.
