In recent years, Hertz has made significant investments in electric vehicles (EVs), aiming to modernize its fleet and promote sustainable transportation. However, the company has faced challenges with its EV strategy. In 2021, Hertz announced plans to purchase 100,000 Teslas, marking a substantial shift towards electrification. By early 2023, the company had integrated approximately 50,000 EVs into its fleet, accounting for about 10% of its total vehicles.
Despite these efforts, Hertz encountered higher-than-expected repair and maintenance costs for EVs, leading to increased depreciation expenses. In response, the company decided to sell around 20,000 EVs, including Teslas, to better align with customer demand and financial objectives.
To facilitate these sales, Hertz has offered rental customers the opportunity to purchase their rented EVs at discounted prices, aiming to raise awareness of its car sales program.
This strategic adjustment reflects Hertz’s efforts to balance its commitment to electrification with the practical challenges of fleet management and market demand.