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.
The rental-car company reported third-quarter adjusted profit of 70 cents a share, below the 77-cent average estimate of analysts surveyed by Bloomberg. Excluding EV costs, Hertz probably would have met Wall Street expectations, Scherr said.
Read Article