Rental company Hertz Global Holdings announced its decision to sell approximately 20,000 electric vehicles, including Teslas, from its U.S. fleet, citing increased expenses related to collision and damage. The company plans to transition to gas-powered vehicles, leading to a four percent decline in its shares, with a three percent drop in Tesla's stock. The move is expected to incur about $245 million in depreciation expenses in the fourth quarter of 2023. Hertz had previously committed to acquiring 100,000 Tesla vehicles by the end of 2022 and an additional 65,000 units from Swedish EV maker Polestar over five years.
The decision to sell electric vehicles and return to gas-powered ones has prompted discussions about the challenges and hidden costs associated with EV ownership. Morgan Stanley analyst Adam Jonas views Hertz's move as a cautionary signal for the entire electric vehicle market, emphasizing the need to recalibrate expectations. While consumers appreciate the driving experience and fuel savings of EVs, Hertz's experience highlights persistently high expenses related to collision and damage, influencing the broader perception of electric vehicle ownership in the market. CBC News sought clarification on whether Hertz's Canadian vehicle fleets would be affected by these changes.
Read more using the link below:
Comments