Hertz is selling 20,000 EVs and replacing them with gas-powered vehicles

The U.S. says it has sold about 20,000 electric vehicles from its fleet, about a third of its total. in its global fleet. It claimed that “collision and damage costs, primarily related to EVs, remained high” in the most recent fiscal quarter, “thereby supporting the company’s decision to begin a material reduction in its EV fleet.” Hertz said it plans to reinvest some of the proceeds into buying gas-powered vehicles.

“The company expects this move to better balance supply with expected demand for EVs,” Hertz said . “This will eliminate the company’s disproportionate number of low-margin rentals and reduce damage costs associated with EVs.”

There were already signs that Hertz was cooling off on its decision to invest heavily in EVs over the past few years. In 2021, it was reported that the rental company owned it . The following April, it emerged that Hertz had planned more than five years.

But in October 2023, Hertz said it was to electrify its fleet. At the time, CEO Stephen Scherr told Hertz that EVs cost Hertz “about twice as much to repair as a conventional internal combustion engine car.”

whom notes that Tesla currently sells more than 700 electric cars through its own . The vast majority of them are Tesla Model 3 and Model Y cars.

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