Tesla’s impact on Hertz costs over $500 million
- Hertz’s stock gets downgraded due to association with Tesla
- J.P. Morgan analyst estimates Tesla association is costing Hertz over $500 million
- Hertz’s push to incorporate EVs into its fleet has fared poorly
- Tesla’s price cuts and supply issues have led to higher expenses for Hertz
- Deutsche Bank also downgrades Hertz and upgrades rival Avis
Hertz Global Holdings Inc. has received another downgrade from a Wall Street analyst, and the main reason behind it is the company’s association with electric-vehicle giant Tesla Inc. J.P. Morgan analyst Ryan Brinkman lowered his rating on Hertz’s stock and cut his price target. Hertz’s stock has dropped over the past three months, while rival Avis Budget Group Inc. has gained. The push to incorporate EVs into Hertz’s fleet, including the plan to buy 100,000 Tesla EVs, has not been successful. Tesla’s price cuts and supply issues have led to higher expenses for Hertz. Deutsche Bank also downgraded Hertz and upgraded Avis.
Public Companies: Hertz Global Holdings Inc. (HTZ), Tesla Inc. (TSLA), Avis Budget Group Inc. (CAR)
Private Companies:
Key People: Ryan Brinkman (J.P. Morgan analyst), Chris Woronka (Deutsche Bank analyst)
Factuality Level: 7
Justification: The article provides information about a Wall Street analyst downgrading Hertz’s stock due to its association with Tesla and the company’s push to incorporate electric vehicles into its fleet. The article includes quotes from the analyst and explains the reasons behind the downgrade. It also mentions Hertz’s stock performance compared to its rival Avis and the S&P 500 index. The article provides details about the impact of Tesla’s discounts on the value of used vehicles owned by Hertz and the challenges Hertz faced in servicing and repairing its EV fleet. The article also mentions another analyst who downgraded Hertz and upgraded Avis. Overall, the article provides factual information and quotes from analysts to support its claims.
Noise Level: 4
Justification: The article provides some relevant information about Hertz’s association with Tesla and the downgrade by analysts. However, it lacks in-depth analysis and evidence to support its claims. It also includes some repetitive information and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The downgrade of Hertz’s stock may impact the company’s financial performance and investor sentiment. It may also have implications for the car rental industry as a whole.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the downgrade of Hertz’s stock and its association with Tesla. However, there is no mention of an extreme event or its impact.
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