Hertz Global Holdings (HTZ.O) reported a $2.9 billion loss for 2024, with its pivot to electric vehicles (EVs) cited as a key factor contributing to the financial downturn. The rental company, which made headlines in 2021 with a high-profile purchase of 100,000 Tesla vehicles, has since scaled back its EV fleet due to lower-than-expected demand and infrastructure challenges.
“Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company,” said Hertz CEO Gil West during the company’s earnings call on Thursday. “With our new leadership team and organizational structure in place, we are well positioned to execute our strategy with rigor and at pace.”
See also: Hertz Faces Challenges with EV Fleet Depreciation, Plans to Sell 30,000 EVs by End of 2024
As part of its restructuring efforts, Hertz completed the sale of 30,000 EVs in late 2024, a process that began the previous year. The company reported a GAAP net loss of $479 million in the fourth quarter, though it avoided a repeat of the $245 million loss linked to its EV sell-off in 2023.
Market analysts have pointed to limited charging infrastructure as a key factor in the company’s EV struggles. “EVs are not popular with car renters given the limited network of charging stations across the U.S.,” MarketWatch reported. The company noted that idle electric rental cars, rather than generating revenue, increased operational costs.
See also: Hertz Plans Aggressive Sale of Tesla Fleet Amid Depreciation Concerns
Hertz maintains that it is not abandoning EVs but is instead reallocating them to regions with higher adoption rates and stronger charging networks, such as California. However, investor confidence remains shaken. Following the earnings report, Hertz shares dropped by 11% before recovering slightly to an 8.4% decline by mid-day trading.