Hertz sells off Tesla fleet at discounted price as EV sales slump

Ayush June 6, 2024

TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Thursday, June 6.

Full Video Transcript Below:

I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Sometimes the market needs to take a break. That’s what happened one day after both the Nasdaq & the S&P 500 scaled to new heights. Nvidia, the poster child for the recent bull run, also took a breather as it jostles with apple for the world’s second most valuable company.

Attention turns to Friday’s all-important jobs report. Analysts are expecting that the U.S. economy added 185,000 new jobs in may, an increase from the month before. The unemployment rate is expected to hold steady at 3.9 percent. This jobs report sets the stage for the Federal Reserve’s two-day policy meeting, which wraps up June 12th.

In other business headlines: Hertz is dumping Teslas onto the used car market. The rental car agency made a huge mis-step by ordering too many electric cars, and now it’s rushing to offload 30,000 EVs. Tesla makes up roughly one-third of all of Hertz’s global EV fleet.

Since January, Hertz has been aggressively offloading teslas at the nationwide average price of roughly $25,000, according to CNBC. Earlier this year in a regulatory filing, Hertz said, “expenses related to collision and damage, primarily associated with EV, remained high.” in the first quarter, Hertz took a $195 million write-down for depreciation of its EVS.

Hertz’s shifting attitude towards tesla and evs in general comes amid a slump in demand for these energy-friendly models. The price tag for a used EV plunged nearly 32 percent in March compared to a year ago, according to iseecars, led by a 29 percent drop for a used Tesla. Compare that to a minor 3.6 percent drop for the average used car during the same period.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.

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