Hertz Hits Brakes on EVs: Sells 20,000 Vehicles, Citing High Repair Costs

Hertz Global Holdings (HTZ.O) is revving its engines in reverse, putting the brakes on its electric vehicle (EV) ambitions. The rental giant plans to sell a whopping 20,000 EVs from its U.S. fleet, citing inflated repair costs for the decision. Investors aren’t happy, sending Hertz shares skidding as much as 9% before the market even opened.

Electric Dreams on Hold: Hertz had been pushing hard for electric mobility, boasting deals with Tesla and Polestar for thousands of EVs. But reality bit hard. Repair bills, especially for EVs, soared, dampening Hertz’s enthusiasm. Facing financial pressure, the company is pumping the brakes on EVs and turning to gas-powered cars instead.

Stalled Strategy: This move throws a wrench in Hertz’s earlier green ambitions. Just last April, they promised to buy 65,000 Polestar EVs over five years. And a year before that, Tesla secured a massive 100,000-vehicle order from the rental company. But with costs climbing, Hertz is hitting the reset button.

Counting the Cost: This shift isn’t cheap. Hertz expects to take a $245 million hit from the EV sale. Their used car website is now flooded with over 700 EVs, from BMW i3s to Tesla Model Ys. It’s a clear sign that Hertz is rethinking its electric strategy, prioritizing finances over green goals for now.

Shifting Gears: Hertz’s decision throws light on the challenges businesses face in switching to EVs. While sustainability is important, practical concerns like repair costs and market dynamics can’t be ignored. Finding the right balance between green dreams and financial realities is the tricky uphill road companies navigating the EV transition need to climb.

Will Hertz’s shift signal a wider slowdown in EV adoption? Will other companies follow suit? Stay tuned as the electric car race takes an unexpected turn.