HTZ - Hertz pauses plans of buying Polestar EVs
2024-02-05 08:37:32 ET
Hertz Global Holdings Inc (NASDAQ: HTZ) says it will not buy electric vehicles from Polestar Automotive Holding UK Plc (NASDAQ: PSNY) in 2024. Shares of the latter are down 5.0% this morning.
Why doesn’t Hertz want Polestar vehicles this year?
In 2022, Hertz announced an agreement with Polestar to buy 65,000 of its electric vehicles over five years.
On Monday, however, the car rental company based out of Florida, United States cited higher repair costs and lower resale value as it rolled back on the aforementioned deal.
Is demand for electric vehicles (EVs) slowing in the United States? The short answer is no. BNEF found no signs of a global #EV slowdown and said that such reports have been “greatly exaggerated.” Continue reading via @TheICCT #EVGrowth https://t.co/JNABJSN6OY
— Beam Global (@BeamForAll) February 2, 2024
The news arrives only a day before Hertz is scheduled to report its financial results for the fourth quarter. Consensus is for it to lose $1.02 a share versus 50 cents of earnings on a per-share basis a year ago.
is now down over 60% versus its 52-week high.
Hertz has been buying EVs from Polestar
Note that Hertz did buy some 20,000 electric vehicles from in 2022 and 2023 (combined).
But it reportedly contracted Polestar last autumn to explore the possibility of taking a break from the agreement that bound it to buying tens of thousands of its EVs in 2024.
Watch here: https://www.youtube.com/embed/Jpp2k2j1WC0?feature=oembedPolestar did agree on the requested pause provided that Hertz committed to not selling its electric vehicles currently in the inventory either “too early or too cheaply”, as per a Financial Times report on Monday.
In January, Hertz Global announced plans of selling 20,000 electric vehicles in its U.S. fleet to reinvest in gas-powered vehicles ( find out more ).
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