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Hertz Slows EV Acquisitions

Says Tesla price cuts, higher repair cost affecting its bottom line.

October 27, 2023
Hertz Slows EV Acquisitions

Tesla has made a series of price cuts to its vehicles this year to increase volume.

IMAGE: Pexels/Pixabay

1 min to read


Car rental company Hertz said it plans to downshift its electric-vehicle investment, citing higher-than-expected repair costs and Tesla price cuts’ affect on the resale value of most of its EV fleet, according to news reports of its third-quarter earnings call.

Hertz said in its quarterly report that uncertainty around the “economics” of EVs could impact its earlier financial forecast.

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Multiple carmakers recently announced plans to scale back EV production due to flattening consumer demand. Higher prices than gas-powered models, along with concerns about sufficient battery-charging infrastructure, have discouraged many consumers from adopting EVs, though U.S. EV sales reached a record 8% in the third quarter.

Tesla has made a series of price cuts to its vehicles this year to increase volume as larger economic pressures tightened demand, including inflation and interest rate increases. Other carmakers followed with their own cuts, but Teslas make up the biggest chunk of Hertz’s EV supply.

DIG DEEPER: EV Supply Outpaces Industry Average

Originally posted on Auto Dealer Today

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