Hertz Continues to Suffer Financially From Bid to Go Electric, as J.P. Morgan Downgrades Stock
fliptop writes:
The bad news continues as the rental giant tries to untangle itself from its failed electric vehicle strategy:
Ryan Brinkman, automotive equity research analyst with J.P. Morgan, downgraded Hertz Global Holdings from neutral to underweight Monday.
The assessment, Seeking Alpha reports, comes as the company tries to reverse course from its failed EV strategy, which has cost the company as much as $1 billion. The losses stem from the vehicle's high depreciation rates and high collision repair costs. The lack of spare parts for repairs is also undermining utilizations of the company's electric fleet.
As reported on Yahoo! News:
The challenges don't stop there. Hertz's heavy debt load is tying its hands, potentially forcing the company to navigate choppy waters without the lifeline of share buybacks. With used-vehicle prices on shaky ground and high refinancing costs, Hertz is bracing for more cash outflows. Throw in a recent adverse court ruling that resurrected litigation risks from its bankruptcy, and the financial landscape looks even more daunting. The path to stability isn't just steep; it's laden with obstacles.
Previously:
- Hertz is Selling 20,000 Electric Vehicles to Buy Gasoline Cars Instead
- Hertz to Purchase 175,000 General Motors EVs Over the Next Five Years
- Hertz Plans to Buy 65,000 EVs From Polestar Over Five Years
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