2024-01-12 22:37:00
Hertz previously announced that it plans to make 25% of its fleet electric by the end of 2024, but today announced that the high repair costs for electric vehicles after an accident make them unaffordable compared to gas-powered vehicles. The company’s CEO, Stefan Scher, already spoke out earlier this year on the issue and said that the company even limited the acceleration and speed of its Teslas, and even allowed Tesla rentals only to more experienced drivers, after a large number of the company’s Teslas were involved in head-on accidents.
Hertz anticipates losses of approximately $245 million related to the decrease in value that the company realized in the sale of the vehicles, losses that are expected to be included in the fourth quarter of 2023 reports.
Other car rental companies are also abandoning electric vehicles – Sixt already announced a year ago that it has not purchased new Teslas since 2022 and that it is selling the current Tesla vehicles it owns, but did not indicate a specific reason for the move and said it was part of an efficiency plan. Unlike Hertz, Sixt still plans to convert a significant portion of its fleet to electric, with its goal being to convert between 70%-90% of the fleet in Europe to electric by 2030.
Meanwhile, the prices of used electric vehicles also continue to fall, alongside the drop in prices of new vehicles. The estimates even before Hertz’s announcement were that the prices of second-hand electric vehicles would drop more in 2024 than the prices of second-hand gasoline vehicles. Hertz sells some of its Tesla vehicles at prices as low as $20,000, almost half the price of a new vehicle.
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