Avis Budget Group's stock plummeted 17.53% during Thursday's intraday trading session, following a significant decline in pre-market activity.
The sharp drop comes after the car rental company reported fourth-quarter financial results that missed analyst expectations. Revenue for the quarter came in below estimates, and the company reported a substantial net loss.
A key factor contributing to the poor results was a significant impairment charge tied to the company's U.S. electric-vehicle rental fleet. This non-cash charge reflects a strategic shift in the company's fleet strategy, which shortened the useful life of certain EV rental cars.