Rental firm Hertz Global Holdings (HTZ.O) said on Thursday it would sell about 20,000 electric vehicles, including Teslas, from its U.S. fleet due to higher expenses related to collision and damage, and will opt for gas-powered vehicles.

Shares of the company, which also operates vehicles from Swedish EV maker Polestar among others, fell about 4%. Tesla’s (TSLA.O) stock was down about 3%.

Hertz also expects to book an about $245 million charge related to depreciation expenses from the proposed EV sale in the fourth quarter of 2023.

Hertz’s decision underscores the bumpy road EVs have hit as the growth rate on sales of those vehicles has slowed, causing carmakers like General Motors (GM.N) and Ford (F.N) to scale back production plans of those vehicles.

Morgan Stanley analyst Adam Jonas in a note said the car rental firm’s move was a warning across the EV space and it was another sign that EV expectations need to be “reset downward across the market.”

“While consumers enjoy the driving experience and fuel savings (per mile) of an EV, there are other ‘hidden’ costs to EV ownership,” Jonas added.

  • Diplomjodler@lemmy.world
    61·
    1 year ago

    EVs are a lot cheaper to run so maybe you shouldn’t concentrate exclusively on the sticker price. Also, in the long term EVs will be cheaper to buy than gas cars too. Right now the limited availability of batteries puts limits on EV adoption. That will change in the next few years. Then EVs will be both cheaper to buy and to run than gas cars. The problem of increasing complexity and worse repairability applies to all modern vehicles, regardless of drive train.

    • Snot Flickerman@lemmy.blahaj.zoneEnglish
      59·
      1 year ago

      The problem of increasing complexity and worse repairability applies to all modern vehicles, regardless of drive train.

      EV’s were just the first step of the auto industry fully embracing that all vehicles are luxury, and economy cars just don’t exist anymore.

      Golly gee whillickers, it looks like I’m already aware of that.

      Also, in the long term EVs will be cheaper to buy than gas cars too.

      Once again, not before I fucking die. I’ve been waiting for one most of my adult life.

      Right now the limited availability of batteries puts limits on EV adoption. That will change in the next few years.

      How, by couping a country with a lot of lithium like Bolivia?