Hertz has decided to sell 20,000 electric vehicles (EVs) from its rental fleet including Teslas, Chevrolets and BMWs, saying it will replace them with gas-powered vehicles, according to regulatory filing on Thursday. The company cited higher repair costs as the primary reason.
It could be seen as a warning in the EV market, Morgan Stanley analysts told Reuters, saying expectations for the electrification of the transportation sector need to be reset downwards. That follows news of both Ford and GM slowing their production and delivery of their respective electric vehicles.
In 2022, Hertz ordered 100,000 Tesla vehicle and later ordered 65,000 Polestar EVs over the next five years.
On its website the company is selling some Tesla Model 3s for about $20,000, about half the price of a new version. And those used EVs still partially qualify for Inflation Reduction Act related rule-making EV tax credit meaning buyers could improve the deal further.
Tesla
“For those of you who like the Tesla product but don’t want to directly pad Elon’s coffers (I know quite a few of you who fit that description), maybe here’s a way to get into one? They’re being replaced by gas cars so Hertz’s sale of these cars doesn’t lead to new Tesla sales to replace these,” Ed Kim, President and Chief Analyst at AutoPacific said on the business networking site Linkdin.
“You’ll still have to pay Tesla for internet access and you are still giving them tons of valuable data, but if you’ve ever wanted a Tesla but had issues with Elon Musk, an ex-Hertz Tesla might be for you. Plus, these should qualify for the federal used EV tax credit of 30 percent of the price, up to $4,000, for even greater savings,” Kim wrote.
The Hertz car sales site shows a Tesla Model Y Long Range for $31,955. That model has a range of 310 miles on a charge. Used Teslas also come with access to the company’s Supercharger network. The site also has dozens of Tesla Model 3s and Kia and Chevrolet EVs.
Despite the sale, the Hertz company has been doing its part to get more drivers into EVs. In 2023 it held several events in Denver, Los Angeles and elsewhere allowing drivers to take a ride in one of the new Tesla, Subaru, Polestar, and Kia vehicles in its fleet. It also provides guidance to renters who choose an electric vehicle such as how to operate and charge them, and where to find stations when on the road.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.