Hertz Suffers $195 Million Loss in EV Bet

Hertz Suffers $195 Million Loss in EV Wager

An important rental car company called Hertz lost $195 million last quarter when it decided to write off-

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the leftover electric vehicles (EVs) it had bought for its fleet. It's now a loss of $588 million, which is more than what Wall Street experts thought would happen.

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Changes to Hertz's Stock: When people heard about these losses, Hertz's stock dropped more than 24% on Thursday. But it got a little better on Friday.

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Lost Money in the Previous Quarter: Hertz had already reported a big loss in the previous quarter, which was its biggest since 2020.

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The company chose not to use EVs, which caused this loss. His Big Bet on EVs: In 2021, Hertz made the big choice to buy 100,000 Teslas for its EV fleet.

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However, because buyers weren't interested, they changed their minds early this year and-

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chose to sell many of the EVs and switch back to gas-powered cars. Plans for Now: Hertz now wants to sell another 10,000 EVs,

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for a total of 30,000 EVs this year. Besides that, the business has to pay more to fix its fleet, which adds to its total costs.

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Gil West is the new CEO of Hertz. Stephen Scherr quit, and West took over as CEO.

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West said that the prices of the fleet and operations have had an effect on how well the company has done this quarter.

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Performance in the financial world: Hertz recorded a loss of $1.28 per share, which is a lot more than the 44 cents per share that Wall Street had expected.

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