Hertz's Troubles with Teslas: Scaling Back EV Ambitions and Collateral Damage

Hertz is scaling back its plans to incorporate more electric vehicles (EVs) into its fleet due to challenges such as high repair costs and depreciation. The company initially aimed to have 25% of its fleet as EVs by the end of 2024 but is dropping that goal. Rideshare drivers have been damaging Hertz's EVs at a higher rate than expected, leading to an oversupply and decreased revenue. Repairing damage to EVs is also more expensive compared to combustion-engine vehicles. Additionally, Tesla's price cuts have negatively impacted the fair market value of Hertz's EVs. Despite these setbacks, Hertz remains committed to its long-term strategy of electrifying its fleet. The electric car industry as a whole is facing difficulties, with sales slowing down and automakers cutting prices and reducing spending on EVs.