Hertz pulls back on EV plans citing Tesla price cuts, high repair costs

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Hertz pulls back on EV plans citing Tesla price cuts, high repair costs
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Hertz now has 35,000 Tesla vehicles and around 50,000 electric vehicles in its fleet.

Hertz Global is slowing down the pace by which it adds battery electric vehicles to its fleet, executives said on a third-quarter earnings call on Thursday.

Hertz is pumping the brakes on plans to electrify more of its rental car fleet after EV repair costs came in higher than the company anticipated, and afterThe rental car company reported lower than expected margins for the period ending September 2023, and the CEO said EV repairs were one challenge."Our direct operating expenses remained controlled in the quarter as they grew with transaction volume. On a unit basis, we achieved productivity gains across most categories of auto.

Hertz also disclosed on Thursday that about 80% of the battery electric cars in its fleet are Teslas today. About 11% of Hertz's entire fleet is comprised of electric cars now. With around 50,000 electric cars in its fleet currently, that means Hertz has around 35,000 Teslas in its fleet now.Hertz originally said

As Hertz buys up more EVs from GM and other automakers down the line, Scherr said on the company's Q3 call, the company expects those electric vehicles to have a"lower incidence of damage," and"a lower cost of parts and labor."

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