What Hertz Global Holdings, Inc. told the SEC could break it.

Substantially all of Hertz's revenue-earning vehicles are held in special-purpose entities or encumbered under credit facilities and asset-backed securities programs, exposing the fleet to financing-market and credit-enhancement risk.

“Substantially all of our revenue earning vehicles and certain related assets are owned by special purpose entities or are encumbered in favor of the lenders under the various credit facilities, other secured financings and asset-backed securities programs.”

Hertz's results hinge on vehicle depreciation and residual values; uncertain EV depreciation rates, residual values and financing costs — plus reductions in EV incentives — could hurt fleet economics.

“sociated with EVs, including depreciation rates and residual values of EVs, as well as the cost of financing EVs. These factors, which are evolving due to the development of the EV market, will impact the attractiveness of EVs to us and to our customers.”

Increased U.S. tariffs on imports (Canada, China, Mexico) and reciprocal foreign tariffs raise new-car and component prices and disrupt the global automotive supply chain Hertz depends on to buy fleet.

“The Trump Administration has imposed and significantly increased tariffs on foreign imports into the U.S., particularly from Canada, China and Mexico. In response, many foreign countries have implemented or increased tariffs on imports into their countries. These tariff increases can adversely impact the global automotive supply chain.”

Hertz relies on third-party distribution channels (travel agencies, online travel agencies, partners) for a significant share of revenue; adverse changes in access, prominence, cost or volume could materially hurt the business.

“We rely on third-party distribution channels for a significant amount of our revenues, and adverse changes in our access to, prominence within, cost to participate in, or volume delivered pursuant to these distribution channels could have a material adverse effect on our business, financial condition,”