Rental Car Company Reports $800 Million Loss Due to EV Impairment... Stock Surges 18% in One Day

Avis Budget Group Inc. (NASDAQ: CAR) shares closed at $173, up 18.62% from the previous day on Nasdaq, marking a sharp short-term rally.

Trading volume surged to about 1.44 million shares—well above the norm—and the company’s market capitalization jumped by roughly $1.4 billion (around KRW 1.9 trillion) in a single day to approximately $6.1 billion (about KRW 8.2 trillion).

In its fiscal fourth quarter of 2025, Avis Budget Group reported a GAAP net loss of about $856 million due to substantial writedowns on its electric-vehicle rental fleet, and its revenues fell short of market expectations. (prnewswire.com)

These EV impairments also hurt the value of vehicles securing roughly $965 million in asset-backed securities, prompting the law firm Levi & Korsinsky to launch an investigation into potential investor losses. (prnewswire.com)

Headquartered in Parsippany, New Jersey, Avis Budget Group is a global car-rental holding company operating hundreds of thousands of vehicles worldwide under the Avis, Budget and Zipcar brands. (en.wikipedia.org)

Since its founding in 1946, the company has grown into one of the U.S. car-rental market’s major players, offering short-term rentals and car-sharing services at airports and urban centers. (en.wikipedia.org)