Tesla has the cut its prices again in a number of major markets - including the US, China and Germany - as the electric car giant run by multi-billionaire Elon Musk faces falling sales.
A price war has been intensifying between electric vehicle (EV) makers, with particularly fierce competition coming from Chinese firms. Tesla is due to report financial results for the first quarter of 2024 after the US market close on Tuesday.
@#19 ... Price cut depreciation, not really, and extremely bad for fleet purchasers. ...
Speaking of fleet purchasers...
Hertz Reports $392 Million Loss as It Unwinds Tesla Fleet
www.bnnbloomberg.ca
... Hertz Global Holdings Inc. reported a loss that was nearly three times worse than analysts expected as it accelerated sales of electric vehicles to reduce its fleet of Tesla Inc. models that have weighed on profits for the past year.
The company said Thursday that it lost $1.28 a share, or $392 million, against analyst expectation for a loss of 44 cents a share. The car rental company took a $195 million charge for the depreciation of an additional 10,000 EVs that Hertz is now holding for sale. While the company met revenue expectations, it is trying to quickly work past its failed bet on electric vehicles that resulted in lower rental rates and higher costs.
Shares tumbled 23% at 10:55 a.m. in New York " on track for their biggest one-day drop ever -- and the price sank to a record low of $4.48. Hertz had already fallen 44% this year through Wednesday's close.
New Chief Executive Officer Gil West appears to be willing to take bitter medicine in the near term to get the right amount of EVs in Hertz's fleet and reduce the damage the cars are doing to the company's profits.
EVs have higher repair costs than traditional gas-powered vehicles and the values have fallen after Tesla cut prices last year and continued to do so this year. ...
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