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-

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.

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.

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

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.

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

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,

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.

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

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

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.