Becker Business Podcast
Episode: Avis Gets Crushed by Electric Vehicles (02-20-26)
Host: Scott Becker
Release Date: February 20, 2026
Overview
In this concise episode, Scott Becker reviews the steep challenges facing Avis following a disastrous financial quarter, attributing much of their trouble to the transition to electric vehicles (EVs). The episode highlights how strategic miscalculations in fleet management and shifting consumer preferences have deeply impacted Avis’s profitability and stock performance.
Key Discussion Points & Insights
Avis’s Earnings Miss and Stock Crash
- Massive Earnings Miss:
- Avis reported a significant quarterly loss:
- “Avis had a huge earnings miss this past quarter. Reported a devastating loss, almost $21 a share versus expectations of a loss of about 23 cents a share.”
(Scott Becker, 01:06)
- “Avis had a huge earnings miss this past quarter. Reported a devastating loss, almost $21 a share versus expectations of a loss of about 23 cents a share.”
- Avis reported a significant quarterly loss:
- Stock Market Impact:
- The financial results triggered a major sell-off in Avis shares:
- “This led to a massive sell off today in AVA stock down about 24% on day.”
(Scott Becker, 01:19)
- “This led to a massive sell off today in AVA stock down about 24% on day.”
- The financial results triggered a major sell-off in Avis shares:
- Revenue Shortfall:
- Avis also missed revenue targets:
- “They were supposed to have about 2.7 billion in revenues. They fell short of that.”
(Scott Becker, 01:29)
- “They were supposed to have about 2.7 billion in revenues. They fell short of that.”
- Avis also missed revenue targets:
The Electric Vehicle (EV) Challenge
- Fleet Depreciation and Write-Offs:
- Avis took a substantial impairment charge on its EV fleet, citing overestimated durability and value:
- “They’re doing a huge write off of their electronic vehicle fleet. They took a large impairment charge, depreciation charge. Basically say these things won’t last nearly as long as they thought they would.”
(Scott Becker, 01:34)
- “They’re doing a huge write off of their electronic vehicle fleet. They took a large impairment charge, depreciation charge. Basically say these things won’t last nearly as long as they thought they would.”
- Avis took a substantial impairment charge on its EV fleet, citing overestimated durability and value:
- Changing Customer Preferences:
- Demand for EV rentals has unexpectedly weakened:
- “People are less interested in renting EVs because [they] don’t have to worry about having to refill or recharge the EV.”
(Scott Becker, 01:44)
- “People are less interested in renting EVs because [they] don’t have to worry about having to refill or recharge the EV.”
- Demand for EV rentals has unexpectedly weakened:
Investor Concerns
- Outlook on Profitability and Cost Pressures:
- Concerns linger about Avis’s profitability and the viability of the rental car business in general:
- “Investors reassess their expectations for profitability and concerns about the cost pressures in the business and also concerns about just overall the rental car business.”
(Scott Becker, 01:52)
- “Investors reassess their expectations for profitability and concerns about the cost pressures in the business and also concerns about just overall the rental car business.”
- Concerns linger about Avis’s profitability and the viability of the rental car business in general:
Notable Quotes & Memorable Moments
- On the scale of the loss:
- “Avis had a huge earnings miss this past quarter. Reported a devastating loss, almost $21 a share versus expectations of a loss of about 23 cents a share.” (Scott Becker, 01:06)
- On the hit to stock price:
- “This led to a massive sell off today in AVA stock down about 24% on day.” (Scott Becker, 01:19)
- On fleet miscalculations:
- “Basically say these things won’t last nearly as long as they thought they would.” (Scott Becker, 01:36)
- On consumer hesitation with EV rentals:
- “People are less interested in renting EVs because [they] don’t have to worry about having to refill or recharge the EV.” (Scott Becker, 01:44)
Timestamps of Important Segments
- 01:00 – 01:06 — Introduction to episode topic by Scott Becker
- 01:06 – 01:19 — Discussion of Avis’s earnings miss and stock market reaction
- 01:19 – 01:29 — Revenue shortfall and analyst expectations
- 01:29 – 01:44 — EV fleet write-off and customer demand challenges
- 01:44 – 01:52 — Broader concerns over profitability and the rental car market outlook
- 01:52 – 01:58 — Closing commentary (“It is what it is. Thank you for listening…”)
Episode Flow & Tone
Scott Becker’s analysis is direct, matter-of-fact, and focused on the numbers. The tone is somber, reflecting the sharp financial downturn and uncertainty gripping Avis. Scott’s style is concise, ensuring listeners get the critical points rapidly without unnecessary frills.
Summary:
This brief episode delivers a clear-headed look at how Avis’s heavy investment in electric vehicles backfired, resulting in massive financial losses and shaken investor confidence. Becker underscores the risks rental companies face when betting big on new technologies amid uncertain consumer demand and market conditions.