Expected incremental free cash flow of $35 million by 2024 and 2025
Hertz plans to sell around 20,000 electric vehicles from its U.S. fleet
Reinvestment in ICE vehicles expected with an estimated net depreciation expense of $245 million
Hertz Global Holdings (NASDAQ:HTZ) announced that it plans to sell around 20,000 electric vehicles (EVs) from its U.S. fleet in order to balance better the expected demand and supply of EVs. The company expects this move will help reduce lower-margin EV rentals and minimize damage expenses, leading to an estimated $250 million to $300 million in incremental free cash flow by 2024 and 2025. Hertz started selling off these vehicles in December last year and will continue this process throughout the year. The company also plans to reinvest part of the cash raised from EV sales into internal combustion engine (ICE) vehicles to satisfy customer demand, recognizing around $245 million of incremental net depreciation expense in the fourth quarter of FY23.
Hertz is selling about a third of its global electric vehicle fleet.
The car-rental company said in a regulatory filing on Thursday that it would use part of the proceeds from selling about 20,000 EVs in the U.S. to purchase internal-combustion-engine vehicles.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(0%)
The article contains an appeal to authority fallacy. The author claims that Hertz is selling electric vehicles from its fleet and reinvesting in gas-powered vehicles without providing any evidence or sources to support this claim.
Hertz is selling about a third of its global electric vehicle fleet.
The car-rental company said in a regulatory filing on Thursday that it would use part of the proceeds from selling about 20,000 EVs in the U.S. to purchase internal-combustion-engine vehicles.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author states that Hertz is selling about a third of its global electric vehicle fleet but fails to mention how many vehicles this actually represents. This statement could be misleading as it implies that Hertz has a significant number of EVs and therefore sells them frequently, when in reality they may only have sold 20,000 EVs worldwide which is not a third of their global fleet. Secondly, the author states that weaker demand for electrified rentals is the reason behind Hertz selling its EV fleet but fails to provide any evidence or data to support this claim. This statement could be misleading as it implies that there has been a decline in demand for EVs when in reality there may not have been any significant change. Lastly, the author states that Hertz will use part of the proceeds from selling about 20,000 EVs to purchase internal-combustion-engine vehicles which could be misleading as it implies that Hertz is abandoning its commitment to electrification when in reality they may still have a significant number of EVs and are simply diversifying their fleet. Overall the article contains several statements that could be misleading or deceptive.
The statement 'weaker demand for electrified rentals' is misleading as it implies there has been a decline in demand for EVs when in reality there may not have been any significant change.
The statement 'Hertz is selling about a third of its global electric vehicle fleet' is misleading as it implies Hertz has a significant number of EVs and therefore sells them frequently, when in reality they may only have sold 20,000 EVs worldwide which is not a third of their global fleet.
Fallacies
(85%)
The article contains an appeal to authority fallacy. The author cites a statement from Hertz without providing any evidence or context for the claim that weaker demand exists for its electrified rentals.
>Hertz is selling about a third of its global electric vehicle fleet, citing weaker demand for its electrified rentals.
Bias
(75%)
The author has a clear bias towards the idea that demand for electric vehicles is weaker than expected. This is evident in their use of language such as 'weaker demand' and phrases like 'citing weaker demand'. The author also implies that Hertz made a mistake by investing heavily in EVs, which could be seen as an anti-EV sentiment.
citing weaker demand for its electrified rentals.
Hertz said it would sell about 20,000 of its global electric vehicle fleet
Site
Conflicts
Of
Interest (50%)
The author has a financial interest in the topic of electric vehicle fleet as they are reporting on Hertz's decision to sell one-third of their EV fleet. The article does not disclose any other conflicts of interest.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Tesla as they have previously reported on this company. The article also mentions Hertz's electric vehicle fleet and their weaker demand for electrified rentals which could be related to internal-combustion-engine vehicles, but there is no direct evidence that the author has a conflict of interest on these topics.
Hertz Global Holdings (NASDAQ:HTZ) plans to sell around 20,000 EVs from its U.S. fleet
The sale of EVs is expected to help balance better the expected demand and supply of EVs
Accuracy
Hertz plans to sell around 20,000 EVs from its U.S. fleet
The company expects to recognize around $245 million of incremental net depreciation expense in the fourth quarter of FY23
HTZ aims to enhance profitability by reducing lower-margin EV rentals and minimizing damage expenses
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Hertz will sell around 20,000 EVs from its U.S. fleet or 33% of its global EV fleet without providing any context on how many vehicles are currently in their U.S. fleet and what percentage they represent globally.
The author claims that Hertz will sell around 20,000 EVs from its U.S. fleet or 33% of its global EV fleet without providing any context on how many vehicles are currently in their U.S. fleet and what percentage they represent globally.
The article states that the sale of EVs will help Hertz balance better the expected demand and supply of EVs, but it does not provide any evidence to support this claim.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(75%)
The article contains a statement that Hertz will sell around 20,000 EVs from its U.S. fleet or approximately one-third of its global EV fleet. This is an example of bias because it implies that the company's decision to sell these vehicles is solely based on their being electric and not due to any other factors such as customer demand for ICE vehicles, cost savings, etc.
Hertz will sell around 20,000 EVs from its U.S. fleet or approximately one-third of its global EV fleet.
Site
Conflicts
Of
Interest (50%)
The author of the article has a conflict of interest with Hertz Global Holdings as they are reporting on their plans to sell EVs. The company is also mentioned in other topics such as NASDAQ:HTZ and $245 million of incremental net depreciation expense in the fourth quarter of FY23, which could further influence the author's coverage.
The article mentions Hertz Global Holdings multiple times throughout. The company is also mentioned as having plans to sell EVs and experiencing $245 million of incremental net depreciation expense in the fourth quarter of FY23, which could further influence the author's coverage.
The author has a professional affiliation with Hertz Global Holdings as they are reporting on their plans to sell EVs.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Hertz Global Holdings and EVs as they are selling $245 million worth of incremental net depreciation expense in the fourth quarter of FY23. Additionally, there is no mention if this sale will affect their plans to sell ICE vehicles.
Hertz Global Holdings announced that it plans to sell 20,000 EVs and generate $250 million to $300 million in incremental free cash flow. The company also reported a net depreciation expense of $245 million for the fourth quarter of FY23.
The article does not mention if this sale will affect their plans to sell ICE vehicles.
