Hertz Misses Profit Estimate as Tesla Price Cuts Hit Fleet Value
- Lower EV resale value, higher repair costs weigh on results
- Hertz will slow the pace of buying EVs, CEO Scherr says
Cars on a Hertz car rental lot in Berkeley, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Hertz Global Holdings Inc. earnings missed estimates amid headwinds from Tesla Inc. price cuts and the high price of repairs for electric vehicles.
Tesla has been rapidly dropping its prices to spur sales, which has lowered the resale value of the EVs in Hertz’s fleet by about one-third. Repair costs for EVs have also been higher than expected, about double what the company pays to fix damaged gasoline cars, Chief Executive Officer Stephen Scherr said in an interview Thursday.