Transportation
Hertz Falls on Mounting Losses From Failed Bet on Tesla EVs
- Falling value of electric, gas cars drives $1 billion charge
- CEO West working to rebuild rental-car company after crisis
A Hertz rental car location in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Hertz Global Holdings Inc. tumbled after the company reported a worse-than-expected loss stemming from the rental-car company’s failed bet on electric vehicles and heavy depreciation costs that have pummeled earnings for the past year.
The company posted an adjusted loss of 68 cents a share in the third quarter, more than the 46-cent average deficit estimated by analysts. Hertz also took a $1 billion non-cash impairment charge during the quarter, largely due to the lower value of the battery-electric and gas-powered vehicles in its fleet, the company said in a statement on Tuesday.