Hertz, the rental car giant, has made a surprising U-turn on its electric vehicle (EV) ambitions. Just three months after scaling back its EV plans, Hertz is now selling off 20,000 EVs, roughly one-third of its global fleet.
The company cited higher-than-expected depreciation and damage costs, totaling $245 million, and a lack of demand for its EVs. This decision marks an outstanding shift from Hertz’s previous goal of having 25% of its fleet be electric by the end of 2024.
The sale of these EVs will reportedly be used to purchase gas-powered vehicles, a move that may seem counterintuitive given the growing demand for electric vehicles.
However, Hertz’s experience with its EV fleet has been plagued by higher utilization rates, particularly among Uber drivers, leading to increased damage and depreciation.
Despite this setback, the sale of these EVs presents an opportunity for consumers looking for a used electric vehicle.
Hertz’s sales page currently lists Tesla Model 3s for as low as $20,000, Chevy Bolts for $21,000, and a BMW i3 for under $17,000. While Polestar 2s and Ford Mustang Mach-Es are not currently listed, they may become available soon.
This sudden change in direction highlights the challenges facing the electric vehicle market, including softening demand and issues with charging and upkeep.
As the industry continues to evolve, companies like Hertz are adapting their strategies to meet changing consumer needs and preferences.