According to various reports, car rental giant Hertz Dumps EVs in favor of gas cars. Hertz Global Holdings announced during the SEC filing its decision to sell off approximately 20,000 electric vehicles (EVs), including Teslas, from its U.S. fleet. This decision reverses the company’s previous announcement in 2021 when it unveiled plans to purchase 100,000 Tesla vehicles.
Hertz is selling off a third of its EV fleet, which is predominantly made up of Teslas and will be replacing them with gas cars. The reasons behind this sudden shift remain undisclosed. However, some industry observers speculate that the decision could be driven by the current challenges associated with EVs. These include higher costs, longer charging times, and a lack of adequate charging infrastructure.
The company had initially planned to use Tesla cars as a major portion of its rental fleet. But, it seems like they’ve changed course with this recent move. However, the specific details of the sale, such as the models of the cars being sold or the timeline of the sale, have not been disclosed yet.
Despite this shift, Hertz isn’t completely abandoning electric vehicles. Post-sale, the company will still maintain a substantial fleet of EVs.
This might seem like a hasty decision. But when taking into account the current situation of the EV market where, despite major improvements, EVs continue to be pricier both to purchase and to maintain compared to their gas counterparts, it’s easier to see why they come up with the decision. Moreover, the limited availability of EV charging stations further complicates matters for renters looking for charging options.
As Hertz dumps EVs, this now raises some important questions about the future of EVs. Will other car rental companies follow in Hertz’s footsteps and ditch EVs? Or will the tide turn in favor of electric cars as battery technology improves and prices come down? Only time will tell.
Hertz’s decision to ditch EVs in favor of gas cars has caused a stir in the EV industry. While some may see this as a step backward, it’s important to consider the current state of the market and customer demand. As battery technology improves and prices come down, we may see a shift towards EVs in the future. For now, Hertz has made a decision based on what it believes will offer customers the most options and meet their needs. As always, the market will decide whether this is the right move.
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