Rising Demand for EVs Among US Car Rental Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy HTZ?
Source: Newsfilter
- EV Reservation Surge: Hertz reported a nearly 25% increase in EV reservations in March compared to February, indicating a growing consumer interest in electric vehicles, particularly on the West Coast where gas prices are highest, suggesting a potential fleet adjustment by rental companies to meet market demand.
- Significant Fuel Price Impact: U.S. gas prices have risen by over a third since February 28, reaching $4.02 per gallon, prompting consumers to seek more economical travel options, reflecting the direct impact of Middle Eastern conflicts on the market.
- Used EV Market Rebound: The price of used electric vehicles has firmed up after months of decline due to rising oil prices, indicating a recovery in consumer demand for EVs, which may drive rental companies to invest more in electric vehicle offerings.
- Strong Performance of Rental Platforms: Car Rental Gateway reported a 16% relative increase in EV and hybrid bookings in March, suggesting that rental companies could gain a competitive edge in a high fuel price environment by attracting more customers looking to save on fuel costs.
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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: 5.750
Low
3.00
Averages
4.83
High
6.00
Current: 5.750
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.
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- Surge in Trading Volume: Despite a thin float, trading volume for both Avis Budget (CAR) and Hertz Global (HTZ) has surged over the past week, indicating heightened investor interest that may lead to further price volatility.
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- EV Reservation Surge: Hertz reported a nearly 25% increase in EV reservations in March compared to February, indicating a growing consumer interest in electric vehicles, particularly on the West Coast where gas prices are highest, suggesting a potential fleet adjustment by rental companies to meet market demand.
- Significant Fuel Price Impact: U.S. gas prices have risen by over a third since February 28, reaching $4.02 per gallon, prompting consumers to seek more economical travel options, reflecting the direct impact of Middle Eastern conflicts on the market.
- Used EV Market Rebound: The price of used electric vehicles has firmed up after months of decline due to rising oil prices, indicating a recovery in consumer demand for EVs, which may drive rental companies to invest more in electric vehicle offerings.
- Strong Performance of Rental Platforms: Car Rental Gateway reported a 16% relative increase in EV and hybrid bookings in March, suggesting that rental companies could gain a competitive edge in a high fuel price environment by attracting more customers looking to save on fuel costs.
See More
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Partnership Announcement: Hertz and Uber have formed a partnership to enhance transportation services through the integration of autonomous robot taxis and a driver-led fleet.
Focus on Autonomous Technology: The collaboration aims to leverage autonomous vehicle technology to improve efficiency and accessibility in urban transportation.
See More
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- Consecutive Losses: Avis Budget's stock is on track for a sixth straight decline after reporting a second consecutive quarterly loss, with Q1 losses narrowing to $8.01 per share from $14.35 a year ago, indicating ongoing profitability challenges for the company.
- Investor Stake Reduction: Major investor Pentwater Capital Management offloaded approximately 3.44 million shares between April 22 and 23, putting additional pressure on the stock price and reflecting market concerns about the company's future prospects, which may undermine investor confidence.
- High Operating Costs: Despite a 4% year-over-year revenue increase to $2.53 billion in Q1, surpassing analyst expectations, Avis faces significant profitability pressures due to high operating costs, rising interest expenses, and vehicle depreciation, highlighting challenges faced by the industry as a whole.
- Short-Term Pressure: The short interest in Avis stock stands at around 69%, down from 94.2% last week, yet the stock still fell 7% to $169.2, reflecting market uncertainty regarding the company's future performance and potentially leading to further stock price volatility.
See More
Avis Budget Shares Plunge 48% Amid Meme Stock Volatility
- Dramatic Price Volatility: After significant gains in April, Avis Budget's stock plummeted approximately 48% in Thursday trading, indicating high market uncertainty regarding its valuation and reflecting speculative sentiment in the rental car sector.
- Lack of Fundamental Support: Despite a 129% increase in stock price over the past month, there are no major business-specific news items to justify this valuation, suggesting that the recent price surge may be built on shaky foundations.
- Shifting Market Dynamics: The U.S. rental car industry has seen unexpected rallies due to a resurgence in meme stock trading, with companies like Avis and Hertz benefiting from mismatches in supply and demand, driving their stock prices higher despite a lack of substantive news.
- Increased Investment Risks: While meme stock support could lead to short-term price rebounds, Avis's stock decline of nearly 50% in a single trading session highlights the high risk associated with this investment, as the lack of fundamental backing makes future price movements difficult to predict.
See More
Wall Street's Bearish Outlook on Three Stocks
- Lackluster Growth: The Honest Company (HNST) has experienced only 5.8% annual revenue growth over the past three years, indicating a loss of market share to competitors, which raises concerns about its future prospects.
- Declining Returns: Hertz (HTZ) has seen a 4.7% decline in revenue over the past two years as customers postponed purchases, leading to a risk of diminishing profitability, with its current stock price at $6.60 reflecting a high valuation multiple of 132.5.
- Weak Order Demand: Lennar (LEN) has failed to secure new orders over the past two years, resulting in an average backlog decline of 11.4%, while its free cash flow margin has shrunk by 7.5 percentage points over five years, indicating increased capital consumption to remain competitive.
- Intensifying Market Competition: All three companies face escalating market competition, leading to declining returns on capital, prompting investors to carefully assess their investment value.
See More
Avis Budget Stock Plummets 50% Amid Trading Turmoil
- Stock Plunge: Avis Budget Group (CAR) saw its stock plummet 50% in Thursday afternoon trading, extending a downward trend that began on Wednesday, indicating extreme market pessimism as the stock has now fallen over 75% from its meme-fueled high.
- Trading Mechanics Impact: The unique trading situation was exacerbated by aggressive call buying, with Barclays noting that two holders accounted for 71% of Avis Budget's (CAR) outright ownership and over 100% of economic interest, creating significant market instability.
- Rating Downgrade: Deutsche Bank downgraded Avis Budget (CAR) to a Hold rating earlier this week due to valuation concerns, while Hertz Global Holdings (HTZ) has already lost its last bullish analyst, reflecting a broader cautious sentiment towards the car rental sector.
- Surge in Trading Volume: Despite a thin float, trading volume for both Avis Budget (CAR) and Hertz Global (HTZ) has surged over the past week, indicating heightened investor interest that may lead to further price volatility.
See More
Rising Demand for EVs Among US Car Rental Companies
- EV Reservation Surge: Hertz reported a nearly 25% increase in EV reservations in March compared to February, indicating a growing consumer interest in electric vehicles, particularly on the West Coast where gas prices are highest, suggesting a potential fleet adjustment by rental companies to meet market demand.
- Significant Fuel Price Impact: U.S. gas prices have risen by over a third since February 28, reaching $4.02 per gallon, prompting consumers to seek more economical travel options, reflecting the direct impact of Middle Eastern conflicts on the market.
- Used EV Market Rebound: The price of used electric vehicles has firmed up after months of decline due to rising oil prices, indicating a recovery in consumer demand for EVs, which may drive rental companies to invest more in electric vehicle offerings.
- Strong Performance of Rental Platforms: Car Rental Gateway reported a 16% relative increase in EV and hybrid bookings in March, suggesting that rental companies could gain a competitive edge in a high fuel price environment by attracting more customers looking to save on fuel costs.
See More
