Hertz moves back to ICE cars after selling 1/3rd of its EV fleet

As of October 2023, Hertz had bought just 35,000 Tesla EVs, with its entire electric vehicle fleet comprising of 50,000 vehicles.

According to media reports, car rental company Hertz has announced that it will be selling off a third of its electric vehicle fleet. The EV fleet of Hertz, predominantly consisting of Tesla models, will be sold off & the money made from the sale will go into buying ICE-powered cars.

Hertz has stated that low demand for EVs, paired with the higher-than-expected repair costs, was the reason for their sale decision. The company is said to have already begun selling off its EV fleet and will continue through 2024. The electric cars on sale are being offered with steep discounts. However, the company has told shareholders that it will be able to make up for the loss in the coming years.

The car rental company had initially announced plans to purchase 1,00,000 Teslas by the end of 2022. Instead, as of October 2023, Hertz had bought just 35,000 Tesla EVs, with its entire electric vehicle fleet comprising of 50,000 vehicles. In 2022, the company had also announced plans to buy 1,75,000 EVs from GM and 65,000 units from Polestar. Hertz is yet to confirm the status of these plans amidst the EV fleet sale.

Source: TechCrunch