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fliptop [soylentnews.org] writes:

The bad news continues as the rental giant tries to untangle itself from its failed electric vehicle strategy [justthenews.com]:

Ryan Brinkman, automotive equity research analyst with J.P. Morgan, downgraded Hertz Global Holdings [hertz.com] from neutral to underweight Monday.

The assessment, Seeking Alpha reports [seekingalpha.com], comes as the company tries to reverse course from its failed EV strategy, which has cost the company as much as $1 billion. The losses stem from the vehicle’s high depreciation [justthenews.com] rates and high collision repair costs. The lack of spare parts for repairs is also undermining utilizations of the company’s electric fleet.

As reported on Yahoo! News [yahoo.com]:

The challenges don't stop there. Hertz's heavy debt load is tying its hands, potentially forcing the company to navigate choppy waters without the lifeline of share buybacks. With used-vehicle prices on shaky ground and high refinancing costs, Hertz is bracing for more cash outflows. Throw in a recent adverse court ruling that resurrected litigation risks from its bankruptcy, and the financial landscape looks even more daunting. The path to stability isn't just steep; it's laden with obstacles.

Previously:

• Hertz is Selling 20,000 Electric Vehicles to Buy Gasoline Cars Instead [soylentnews.org]
• Hertz to Purchase 175,000 General Motors EVs Over the Next Five Years [soylentnews.org]
• Hertz Plans to Buy 65,000 EVs From Polestar Over Five Years [soylentnews.org]

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