Rental Car Companies Back Away From Hard-To-Resell Electric Vehicles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 15 2024
0mins
Should l Buy HTZ?
Source: Business Insider
- Rental Car Companies and EVs: Rental car companies are less enthusiastic about electric vehicles (EVs) due to challenges in reselling them at decent prices, leading to a decrease in purchases of EVs for rental fleets.
- Challenges Faced by Rental Car Companies: Rental car companies struggle to rent EVs profitably due to issues like lack of charging stations, increased insurance premiums, difficulties in obtaining spare parts, and accidents caused by underestimating EV acceleration.
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Analyst Views on HTZ
Wall Street analysts forecast HTZ stock price to fall
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 5.810
Low
3.00
Averages
4.83
High
6.00
Current: 5.810
Low
3.00
Averages
4.83
High
6.00
About HTZ
Hertz Global Holdings, Inc. is a car rental and mobility solutions provider. The Company's subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of used cars for sale online and at locations across the United States, and the Hertz 24/7 car sharing business in Europe. The Company's segments include Americas RAC and International RAC. Its Americas RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in the United States, Canada, Latin America and the Caribbean. The Company's International RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the United States, Canada, Latin America and the Caribbean. The Company has franchisees and partners that operate rental locations under its brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hertz Launches Digital Showroom on eBay to Boost Sales Strategy
- Digital Showroom Launch: Hertz has launched a dedicated digital car sales showroom on eBay, featuring over 8,000 vehicle listings, aimed at enhancing retail channels and expanding market reach through this reputable e-commerce platform.
- Hertz Certified Guarantee: All listed vehicles undergo a 115-point inspection and come with a “Hertz Certified” guarantee, while eBay’s “Secure Purchase” option offers financing, registration, and up to $100,000 in purchase protection, enhancing consumer trust.
- Strategic Partnership Expansion: This collaboration with eBay is another strategic move by Hertz to unlock growth opportunities, following its partnership with Uber to launch the new entity “Oro Mobility,” which will manage both driverless and driver-led car fleets, further broadening its business scope.
- Positive Market Reaction: While eBay's stock dipped slightly, Hertz's stock rose by 1.5%, indicating investor confidence in Hertz's growth potential, with both stocks outperforming the S&P 500 index over the past year, reflecting market approval of their strategies.
See More
Hertz Car Sales Expands Digital Retail with eBay Partnership
- Digital Retail Expansion: Hertz Car Sales has launched a dedicated digital showroom on eBay, offering over 8,000 Hertz Certified near-new vehicles, significantly enhancing consumer shopping confidence and convenience while bolstering brand value.
- Retail Channel Strategy: This partnership represents a strategic extension of Hertz's initiative to make retail its primary sales channel, allowing access to a broader customer base through eBay's extensive user network, thereby reducing reliance on wholesale channels.
- Vehicle Certification Assurance: All Hertz vehicles listed on eBay undergo a rigorous 115-point inspection, ensuring reliability, and come with a 12-month/12,000-mile limited warranty and a 7-day buy-back guarantee, further enhancing consumer purchase confidence.
- Market Opportunity Capture: By partnering with eBay, Hertz not only expands the reach of its nationwide inventory but also increases retail conversion rates through high-quality entry points into the purchase funnel, showcasing strategic agility in a competitive automotive market.
See More
Hertz and Home Depot Unite to Support Military Community
- National Initiative: Hertz and Home Depot have launched a nationwide initiative aimed at supporting military members and their families by providing reliable transportation, special travel benefits, and home upgrades, demonstrating a strong commitment to the military community.
- Prize Structure: In a nationwide contest throughout May, three winners will receive substantial prizes, including a car from Hertz, a limited-edition Husky workbench, and a $1,000 Home Depot gift card, enhancing the quality of life for service members and their families.
- Special Discounts: From May 1 to July 4, eligible military members can receive up to $1,000 off vehicle purchases at Hertz Car Sales, while Home Depot Military Discount members will be upgraded to Hertz Five Star status, allowing for enhanced service during the busy summer travel season.
- Brand Ambassador Support: Seven-time Super Bowl champion Tom Brady is promoting this initiative, highlighting the sacrifices made by military families and encouraging the public to nominate deserving heroes, thereby increasing societal recognition of military contributions.
See More
Mixed Earnings Reports from Multiple Companies
- Willis Towers Watson's Weak Performance: The insurer reported only 3% organic revenue growth in Q1, falling short of the 4.8% market expectation, leading to a 12% drop in stock price, despite adjusted earnings exceeding Wall Street forecasts, indicating potential growth challenges ahead.
- Hertz Partners with Uber: Hertz's stock surged about 18% following the announcement of a partnership with Uber, where its new Oro Mobility unit will support Uber's robotaxi initiative, with services expected to launch in the San Francisco Bay area later this year, marking a strategic move into autonomous driving.
- Altria's Earnings Beat Expectations: Altria reported adjusted earnings of $1.32 per share in Q1, surpassing the $1.25 consensus estimate, resulting in a stock increase of over 5%, while reaffirming its full-year adjusted earnings guidance, showcasing stability in the tobacco sector.
- Carrier Global's Strong Results: Carrier Global's Q1 adjusted earnings reached 57 cents, exceeding the expected 51 cents, with revenue of $5.34 billion surpassing the $5.01 billion consensus, leading to an 11% stock increase, reflecting robust performance in the building and refrigeration markets.
See More
Hertz Launches New Entity 'Oro Mobility' for Fleet Management
- New Entity Formation: Hertz has established 'Oro Mobility' to provide both driverless and driver-led fleet management solutions, aiming to fill a critical operational gap as the industry shifts from personally owned vehicles to commercially operated fleets.
- Collaboration with Uber: Oro will support Uber's robotaxi program by managing Lucid cars, including daily charging, maintenance, and repairs, with a launch expected in the San Francisco Bay Area later this year, further promoting electric vehicle adoption.
- Positive Market Reaction: Hertz's shares surged over 19% following the announcement of the significant partnership with Uber, indicating strong investor confidence in the new business model and reflecting optimistic expectations for future growth.
- Service Expansion Plans: Oro will provide high-quality fleet services on Uber's platform, launching in Los Angeles and San Francisco, with plans to expand to Northern New Jersey this spring, enhancing Hertz's competitiveness in the ride-sharing market.
See More
Hertz Deepens Partnership with Uber for Fleet Expansion
- Partnership Expansion: Hertz (HTZ) announced a deepened partnership with Uber (UBER) through two new fleet deals aimed at advancing autonomous and driver-led ride services, which is expected to significantly enhance both companies' competitiveness in the mobility market.
- Fleet Management Services: Hertz's Oro Mobility will manage fleet services for Uber's autonomous robotaxi program, including charging, maintenance, and cleaning, with the program set to launch in the San Francisco Bay Area later this year, further promoting the application of autonomous technology.
- Driver-led Model: Oro will also introduce a driver-led fleet model on the Uber platform, already operational in Los Angeles and San Francisco, with a Northern New Jersey launch expected this spring, aiming to enhance service quality through high-quality vehicles and drivers to meet market demand.
- Positive Market Reaction: Hertz's stock surged 18% in premarket trading, indicating strong market response to its partnership with Uber, while HTZ's short interest stands at 20.4% of total float, reflecting market attention on its future performance.
See More
Hertz Launches Digital Showroom on eBay to Boost Sales Strategy
- Digital Showroom Launch: Hertz has launched a dedicated digital car sales showroom on eBay, featuring over 8,000 vehicle listings, aimed at enhancing retail channels and expanding market reach through this reputable e-commerce platform.
- Hertz Certified Guarantee: All listed vehicles undergo a 115-point inspection and come with a “Hertz Certified” guarantee, while eBay’s “Secure Purchase” option offers financing, registration, and up to $100,000 in purchase protection, enhancing consumer trust.
- Strategic Partnership Expansion: This collaboration with eBay is another strategic move by Hertz to unlock growth opportunities, following its partnership with Uber to launch the new entity “Oro Mobility,” which will manage both driverless and driver-led car fleets, further broadening its business scope.
- Positive Market Reaction: While eBay's stock dipped slightly, Hertz's stock rose by 1.5%, indicating investor confidence in Hertz's growth potential, with both stocks outperforming the S&P 500 index over the past year, reflecting market approval of their strategies.
See More
Hertz Car Sales Expands Digital Retail with eBay Partnership
- Digital Retail Expansion: Hertz Car Sales has launched a dedicated digital showroom on eBay, offering over 8,000 Hertz Certified near-new vehicles, significantly enhancing consumer shopping confidence and convenience while bolstering brand value.
- Retail Channel Strategy: This partnership represents a strategic extension of Hertz's initiative to make retail its primary sales channel, allowing access to a broader customer base through eBay's extensive user network, thereby reducing reliance on wholesale channels.
- Vehicle Certification Assurance: All Hertz vehicles listed on eBay undergo a rigorous 115-point inspection, ensuring reliability, and come with a 12-month/12,000-mile limited warranty and a 7-day buy-back guarantee, further enhancing consumer purchase confidence.
- Market Opportunity Capture: By partnering with eBay, Hertz not only expands the reach of its nationwide inventory but also increases retail conversion rates through high-quality entry points into the purchase funnel, showcasing strategic agility in a competitive automotive market.
See More
Hertz and Home Depot Unite to Support Military Community
- National Initiative: Hertz and Home Depot have launched a nationwide initiative aimed at supporting military members and their families by providing reliable transportation, special travel benefits, and home upgrades, demonstrating a strong commitment to the military community.
- Prize Structure: In a nationwide contest throughout May, three winners will receive substantial prizes, including a car from Hertz, a limited-edition Husky workbench, and a $1,000 Home Depot gift card, enhancing the quality of life for service members and their families.
- Special Discounts: From May 1 to July 4, eligible military members can receive up to $1,000 off vehicle purchases at Hertz Car Sales, while Home Depot Military Discount members will be upgraded to Hertz Five Star status, allowing for enhanced service during the busy summer travel season.
- Brand Ambassador Support: Seven-time Super Bowl champion Tom Brady is promoting this initiative, highlighting the sacrifices made by military families and encouraging the public to nominate deserving heroes, thereby increasing societal recognition of military contributions.
See More
Mixed Earnings Reports from Multiple Companies
- Willis Towers Watson's Weak Performance: The insurer reported only 3% organic revenue growth in Q1, falling short of the 4.8% market expectation, leading to a 12% drop in stock price, despite adjusted earnings exceeding Wall Street forecasts, indicating potential growth challenges ahead.
- Hertz Partners with Uber: Hertz's stock surged about 18% following the announcement of a partnership with Uber, where its new Oro Mobility unit will support Uber's robotaxi initiative, with services expected to launch in the San Francisco Bay area later this year, marking a strategic move into autonomous driving.
- Altria's Earnings Beat Expectations: Altria reported adjusted earnings of $1.32 per share in Q1, surpassing the $1.25 consensus estimate, resulting in a stock increase of over 5%, while reaffirming its full-year adjusted earnings guidance, showcasing stability in the tobacco sector.
- Carrier Global's Strong Results: Carrier Global's Q1 adjusted earnings reached 57 cents, exceeding the expected 51 cents, with revenue of $5.34 billion surpassing the $5.01 billion consensus, leading to an 11% stock increase, reflecting robust performance in the building and refrigeration markets.
See More
Hertz Launches New Entity 'Oro Mobility' for Fleet Management
- New Entity Formation: Hertz has established 'Oro Mobility' to provide both driverless and driver-led fleet management solutions, aiming to fill a critical operational gap as the industry shifts from personally owned vehicles to commercially operated fleets.
- Collaboration with Uber: Oro will support Uber's robotaxi program by managing Lucid cars, including daily charging, maintenance, and repairs, with a launch expected in the San Francisco Bay Area later this year, further promoting electric vehicle adoption.
- Positive Market Reaction: Hertz's shares surged over 19% following the announcement of the significant partnership with Uber, indicating strong investor confidence in the new business model and reflecting optimistic expectations for future growth.
- Service Expansion Plans: Oro will provide high-quality fleet services on Uber's platform, launching in Los Angeles and San Francisco, with plans to expand to Northern New Jersey this spring, enhancing Hertz's competitiveness in the ride-sharing market.
See More
Hertz Deepens Partnership with Uber for Fleet Expansion
- Partnership Expansion: Hertz (HTZ) announced a deepened partnership with Uber (UBER) through two new fleet deals aimed at advancing autonomous and driver-led ride services, which is expected to significantly enhance both companies' competitiveness in the mobility market.
- Fleet Management Services: Hertz's Oro Mobility will manage fleet services for Uber's autonomous robotaxi program, including charging, maintenance, and cleaning, with the program set to launch in the San Francisco Bay Area later this year, further promoting the application of autonomous technology.
- Driver-led Model: Oro will also introduce a driver-led fleet model on the Uber platform, already operational in Los Angeles and San Francisco, with a Northern New Jersey launch expected this spring, aiming to enhance service quality through high-quality vehicles and drivers to meet market demand.
- Positive Market Reaction: Hertz's stock surged 18% in premarket trading, indicating strong market response to its partnership with Uber, while HTZ's short interest stands at 20.4% of total float, reflecting market attention on its future performance.
See More
