Russ Cohen

Turbulence in Electric Vehicle Market Electric Vehicle Stocks Plummet As Hertz Shifts Gear

Young woman refueling her car at gas station


Thursday saw electric vehicle stocks take a downwards spiral following a surprising reveal from Hertz Global (HTZ). The car rental titan is set to jettison a third of its electric vehicle fleet in exchange for gasoline-powered cars, citing diminished demand for electric vehicles and escalating repair costs as the rationale for this shocking reversal. However, with a portion of its EVs still available for rental, Hertz (HTZ) aims to bolster their profitability by expanding access to charging stations, strengthening ties with EV manufacturers, and streamlining the customer experience for EV rentals.

The repercussions of Hertz’s decision reverberated across the market, contributing to dips in share prices for a cohort of prominent electric vehicle players. Tesla (NASDAQ:TSLA) stumbled by -2.65%, Fisker (FSR) tumbled by -6.31%, Lucid Group (NASDAQ:LCID) declined by -6.05%, Rivian Automotive (NASDAQ:RIVN) faltered by -2.15%, and Polestar Automotive (PSNY) faced a -1.58% drop. Detroit’s auto giants Ford (F) and General Motors (GM) also found themselves in the red, with losses of -1.75% and -1.68% respectively. Although the scale of Hertz’s EV sell-off isn’t substantial, it dampens the prospects of Hertz’s initial plan to purchase 100K Teslas, casting a shadow over the near-term Tesla outlook and compounding broader concerns about EV demand, particularly in light of reduced production targets.

In a surprising turn, the one shining star in the market on Thursday was Toyota Motor (TM), which surged by 1.35% at 10:30 a.m. Toyota boasts the highest Seeking Alpha Quant Rating among auto stocks, closely followed by Subaru Corporation (OTCPK:FUJHY), Nissan Motor (OTCPK:NSANY), and Li Auto (LI).