Hertz to Replace CEO After ‘Disastrous’ Bet on Tesla and EVs

Saturday, 16 March 2024, 12:59
Hertz Global's CEO replaced due to failed electric vehicle investment with Tesla. The company suffered huge financial losses after a misguided strategy on EVs. The move to replace the CEO marks a critical juncture as Hertz transitions its electric vehicle focus.

Hertz to Replace CEO After ‘Disastrous’ Bet on Tesla and EVs

Car rental company Hertz seeks to boost its business after a disastrous bet on electric vehicles (EV) involving brands like Tesla. Chief Executive Stephen Scherr has been replaced by Gil West, a former executive at Delta Air Lines.

Under Scherr's leadership, Hertz committed to electric vehicles with orders from Polestar, General Motors, and others. However, Tesla's price reduction in 2023 hurt the resale value of Hertz's fleet, leading to a sale of one-third of its EVs.

Impact of EV Bet

Hertz plans to reinvest in internal combustion engine cars, resulting in a $245 million expense. Despite a 1.2% gain last week, the stock struggles in 2024, losing 25.69% year-to-date.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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