Hertz stock rose due to meme stock rally, but company retreats from EV plans

From Nasdaq: 2024-05-13 14:50:56

Hertz Global Holdings (NASDAQ: HTZ) saw a surge in its stock price on Monday as meme stocks, including GameStop, rallied again. Despite this, Hertz has recently announced a retreat from its EV ambitions due to high costs and lack of customer interest, resulting in the disposal of thousands of electric vehicles.

Previously, Hertz had ambitious plans to purchase large numbers of EVs from companies like Tesla and General Motors, in addition to partnering with BP to establish thousands of EV charging stations across the U.S. However, the costs of maintaining EVs proved to be prohibitive, leading to a change in strategy and the departure of the CEO.

Investors considering investing in Hertz Global should note that while the company’s stock may be experiencing a nostalgic rally, it may not be indicative of long-term success. The Motley Fool Stock Advisor team has identified 10 stocks with strong growth potential, but Hertz Global is not among them. The service offers expert guidance and stock recommendations to help investors achieve significant returns.

Overall, Hertz’s recent decision to scale back its EV ambitions highlights the challenges and costs associated with transitioning to electric vehicles in the rental car industry. While meme stock investors may be driving up the stock price temporarily, long-term success may depend on the company’s ability to adapt to changing market conditions and customer demands.



Read more at Nasdaq: Why Hertz Stock Is Higher Today