Transportation
Sixt Warns Poor Vehicle Resale Values Will Hurt Results
- Shares in Europe’s biggest rental car company slump 14%
- Company is dropping Teslas from fleet on poor residual values
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Sixt SE is continuing to reduce the number of electric vehicles in its fleet after warning that lower resale values would keep Europe’s biggest car-rental company from meeting its annual targets, sending shares down the most in two years.
The stock declined 14% on Friday after Sixt posted a €27.5 million ($29.6 million) loss in the first quarter and cut its annual forecast for earnings before taxes to as low as €350 million from as low as €400 million previously.