Hertz is having a fire sale on its electric fleet – even the ones that didn’t catch on fire – and the results are lit

(scroll down for a visual of the carnage)

Hertz is selling 20K electric vehicles to buy gasoline cars instead

ByPeter Valdes-Dapena, CNN

Hertz, which has made a big push into electric vehicles in recent years, has decided it’s time to cut back. The company will sell off roughly 20,000 vehicles, and use the money they bring to purchase more gasoline-powered vehicles.

And EV price declines in the new car market have pushed down the resale value of Hertz’s used EV rental cars. Hertz expects to take a loss of about $245 million due to depreciation on the EVs, an average of about $12,250, per vehicle the company said in an SEC filing. While Hertz isn’t directly pointing a finger, it appears that Tesla has been largely to blame. Tesla makes up about 80% of Hertz’s EV fleet, has been aggressively cutting its vehicle prices leading other automakers to do the same for their electric vehicles. When automakers reduce the prices of new vehicles, that pushes down the value of those models in the used car market, causing rapid depreciation.

For rental car companies like Hertz, which sell lots of vehicles in the used car market, depreciation has a big impact on their business, and is a major factor when deciding which cars to have in their fleets…


5 thoughts on “Hertz is having a fire sale on its electric fleet – even the ones that didn’t catch on fire – and the results are lit”

  1. I wonder how those EVs are doing in these sub-zero temps??

    Taking longer to charge?

    Battery dying more quickly?

    Good luck, EVs. And that’s a hard pass for me

    1. I saw a video from Canada where it took two hours for a minimal charge and the dude had to sit in the car with heat blasting which only made it longer.

  2. How come this is now news? We have minus degree temperatures here every winter? Last year? 2022?

    Elsewhere in northern states?

    Why a news cycle suddenly?

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