Polestar (NASDAQ:PSNY) stock is slipping on Monday after the electric vehicle (EV) company waived an agreement with Hertz (NASDAQ:HTZ) for the purchase of its EVs.
Hertz had originally agreed to acquire 65,000 EVs from Polestar over a five-year period. That saw it purchase 20,000 EVs from the company throughout 2022 and 2023. However, the cost of EVs has made it rethink these plans.
Hertz notes that it’s pulling back on its EV plans for a couple of reasons. One of these is the fall in resale value of EVs in 2023. Another is the expensive costs it takes to maintain the vehicles as compared to traditional combustion engines.
This has Polestar agreeing to waive Hertz’s agreement to acquire EVs from it for its rental fleet. Seeking Alpha notes that it comes with the stipulation that Hertz doesn’t sell its current inventory of Polestar EVs too early or for too low of a price.
How This Affects PSNY and HTZ Stock
News of the waived EV purchase agreement has both PSNY and HTZ stock falling on Monday. In the case of PSNY, shares are down 2.2%, while HTZ stock is seeing a 2.3% decrease as of the time of this writing. Neither of the companies’ stocks is seeing much in the way of trading activity this morning.
Investors looking for more of the most recent stock market stories are going to want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
