From The Verge: Rental car company Hertz once envisioned itself as the ultimate EV broker, doling out battery-powered vehicles to business travelers, ridehail drivers, and tech newbies in an ambitious plan to grease the wheels for the EV revolution. The company inked agreements with Tesla and Polestar to buy nearly 200,000 EVs. Tesla’s valuation topped $1 trillion on the news.
But like many other aspects of the EV switch, that plan is running into some headwinds. This week, Hertz said it was tapping the brakes on its EV rollout, citing the plummeting resale value of its EVs and the high cost of repair.
Tesla has been slashing prices to spark sales as it finds itself wrestling with softening demand and more competition. And repair costs are about double what the company spends on gas car fixes, Hertz CEO Stephen Scherr told Bloomberg.
Part of the problem is linked to Hertz’s plans to rent EVs to ridehail drivers. Of the 100,000 Tesla acquired by Hertz, half were to be allocated to Uber drivers as part of a deal with the ridehail company. And drivers said they loved the Teslas! But Uber drivers also tend to drive their vehicles into the ground. This higher rate of utilization can lead to a lot of damage — certainly more than Hertz was anticipating.
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