The rental company Hertz announced a very poor fourth quarter of 2023 in terms of results. According to him, his fleet of electric cars is largely responsible.
Hertz reported revenue of $2.2 billion in the final quarter of 2023. This represents a 7% year-over-year increase. While that was largely in line with estimates, Hertz’s adjusted loss of $1.36 per share largely missed the $1.05 target.
The net figures are the cruelest for Hertz, with a loss of $348 million. Over the last three months of the previous year, the company recorded a profit of $116 million.
Depreciation per vehicle, which is an index used by rental companies, is also in the red. Hertz loses $498 per car per month, compared to $242 for the same index in 2022.
Hertz CEO Stephen Scherr praised a positive backdrop, with “strong demand and stable rates”. But he also deplored problems linked to electric cars. “We encountered headwinds related to our electric car fleet and other costs”.
In fact, depreciation is calculated in relation to the selling price of fleet vehicles. The increase in these losses comes largely from the fleet of electric Tesla Model 3s. With the price changes at Tesla, Hertz will inevitably lose when it sells them, and their value drops.
Too many large companies are outside the law for the electrification of their automobile fleets
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