Hertz makes 'agile' decision to shift strategy and sell EVs, Teslas
Publishing timestamp: 2024-01-14 09:02:13
Summary
Hertz is selling about a third of its fleet of electric vehicles, which are predominantly Teslas, signaling a reversal from its goal of converting 25% of its entire fleet to EVs by 2024. Weakening demand, declines in consumer spending, and a more competitive EV market have led to automakers cutting production and reducing prices. Hertz's move follows the rest of the auto industry, and the CEO cites the need to align supply with demand. The company plans to use the proceeds from the sale to buy internal combustion engine cars and expects to improve its bottom line by replacing the EVs. Analysts view this move as a miscalculation by Hertz, and the decision was influenced by Tesla's price reductions.
Sentiment: NEGATIVE
Tickers: 7267.T-JP, GM, HTZ, TSLA, HMC,
Keywords: electric vehicle manufacturing, honda motor co ltd, breaking news: business, general motors co, car rental, hertz global holdings inc, business news, transportation, autos, tesla inc, electric vehicles,