Hertz Global's stock fell 22.5 percent on Tuesday after it posted weak quarterly earnings and cut its full-year profit outlook for the year.
Shares were down as much as 50 percent at one point during Tuesday's session.
Hertz Global, which operates Hertz, Dollar, and Thrifty vehicle rental brands, reported third-quarter earnings on Monday of $1.58 per share, excluding items, on revenue of $2.54 billion. Analysts had expected earnings of $2.73 a share on revenue of $2.59 billion, according to Thomson Reuters consensus estimates.
The company forecast adjusted profit of 51 cents to 88 cents per share for the year, compared with its earlier estimate of $2.75 to $3.50 per share.
"A customary vehicle depreciation rate review near the close of the third quarter resulted in a substantial depreciation adjustment, particularly on compact and mid-sized vehicles," said CEO John Tague in an earnings release. He added the company expected more adjustments in the current quarter.
Rival Avis Budget's shares fell nearly 10 percent in sympathy following Hertz's quarterly report.
Hertz shares are down more than 50 percent this year-to-date and nearly 63 percent in the past 12 months.
—Reuters contributed to this report.