Hertz Sells Electric Vehicles, Moves Away from Tesla Models
Hertz Global Holdings Inc. has completed the sale of 30,000 electric vehicles, primarily Tesla Inc. models. The rental giant is shifting away from electric vehicles due to customer disinterest and high maintenance costs.
Hertz reported a $2.9 billion loss in 2024 attributed to the company's aggressive investment in electric vehicles. The company recorded an adjusted loss of $1.18 per share in the fourth quarter, exceeding analysts' predictions of a 73-cent deficit.
CEO Gil West, who took over in April 2024, has been dismantling the company's electric vehicle fleet and replacing it with lower-maintenance vehicles to enhance profitability. His strategy aims to align Hertz's fleet with consumer preferences and implement operational improvements.
While depreciation costs have decreased by 16% to $422 per vehicle per month, they remain higher than traditional levels of less than $300.