Hertz to sell 20,000 since customers don't like them - but could you get a good deal buying a cast-off Tesla for $18k?
(The company will sell off a third of its electric fleet, totaling roughly 20,000 vehicles, and use the money they bring to purchase more gasoline powered vehicles.
There's a VERY good reason they're getting rid of them. Outside of a few leftie run big cities and a couple tree-hugger campsites, nobody wants to rent them!
What a HUGE slap in the face this is to every battery-powered car advocate out there…)
Car rental giant Hertz is selling 20,000 EVs - a third of its electric fleet - due to a lack of demand and expensive repairs.
The proceeds from those sales will be reinvested in gas cars, the company said in its most recent filings.
Hertz's electric fleet is mostly Teslas but also features Chevrolet Bolts and Polestars.
On Thursday the company had more than 550 Tesla Model 3s and 120 Model Ys listed on its Hertz Car Sales website, with mileage ranging from 10,000 to 100,000.
Some 2021 Model 3s were listed for around $20,000 but on Wednesday prices as low as $17,700 were spotted.
Sale of the vehicles began last month and additional models will trickle out for sale over the course of the year, the company said. EVs held for sale will still be available for rental during the sales process.
The selling of the EV fleet aligns with a broader trend in the US auto market in which demand for electric cars appears to have fallen.
According to Hertz, the sale is to 'better balance supply against expected demand of EVs' and to 'eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs'.
Less than an hour after markets opened on Thursday the rental company's share price had fallen by more than 5 percent.
In its filing to the Securities and Exchange Commission (SEC) it noted that the decision to sell the cars would likely cost around $245 million due to differences between their value at the end of 2023 and the prices for which they eventually sell.
Depreciation of its electric vehicle fleet in recent years is another phenomenon Hertz has previously alluded to.
Hertz CEO Stephen Scherr described the issue during the company's third-quarter earnings call in October, in which it announced it fell short of profit estimates.
'The MSRP declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,' he said.
There's a VERY good reason they're getting rid of them. Outside of a few leftie run big cities and a couple tree-hugger campsites, nobody wants to rent them!
What a HUGE slap in the face this is to every battery-powered car advocate out there…)
Car rental giant Hertz is selling 20,000 EVs - a third of its electric fleet - due to a lack of demand and expensive repairs.
The proceeds from those sales will be reinvested in gas cars, the company said in its most recent filings.
Hertz's electric fleet is mostly Teslas but also features Chevrolet Bolts and Polestars.
On Thursday the company had more than 550 Tesla Model 3s and 120 Model Ys listed on its Hertz Car Sales website, with mileage ranging from 10,000 to 100,000.
Some 2021 Model 3s were listed for around $20,000 but on Wednesday prices as low as $17,700 were spotted.
Sale of the vehicles began last month and additional models will trickle out for sale over the course of the year, the company said. EVs held for sale will still be available for rental during the sales process.
The selling of the EV fleet aligns with a broader trend in the US auto market in which demand for electric cars appears to have fallen.
According to Hertz, the sale is to 'better balance supply against expected demand of EVs' and to 'eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs'.
Less than an hour after markets opened on Thursday the rental company's share price had fallen by more than 5 percent.
In its filing to the Securities and Exchange Commission (SEC) it noted that the decision to sell the cars would likely cost around $245 million due to differences between their value at the end of 2023 and the prices for which they eventually sell.
Depreciation of its electric vehicle fleet in recent years is another phenomenon Hertz has previously alluded to.
Hertz CEO Stephen Scherr described the issue during the company's third-quarter earnings call in October, in which it announced it fell short of profit estimates.
'The MSRP declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,' he said.
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