The rental car company Hertz plans to sell about one-third of its electric vehicles due to faster-than-expected depreciation. The loss in value is a setback to the company’s goal of transitioning to cars that don’t produce emissions. Additionally, the electric vehicles were more prone to accidents and costly to repair, prompting Hertz to focus on purchasing gasoline-powered vehicles.
Republican Senator John Barrasso seized on Hertz’s decision, claiming it demonstrates that electric vehicles are expensive and unpopular. The drop in value of its electric fleet, particularly Tesla vehicles, was attributed to significant price cuts by the carmaker. Hertz’s future electric car plans remain uncertain, but CEO Stephen Scherr remains optimistic about the market’s development.
The decision by Hertz could fuel negative perceptions of electric vehicles, yet industry experts believe there is still a market for EVs. Despite the setback, Hertz’s plans for electrifying its fleet and increasing its Tesla inventory remain intact, although further market development is needed.
