Summary
- Hertz’s EV depreciation has increased by 89%, reaching $537 per car, per month
- The company aims to sell off 30,000 of its EVs by the end of 2024
- Used car buyers can purchase a pre-owned Tesla Model 3 for under $20,000 from Hertz
- Hertz’s plan to continue selling off vehicles through 2025 to reduce losses
- Mismanagement and sudden drops in Tesla prices led to Hertz’s struggle with EV fleet depreciation and significant losses.
Article
Hertz EV Depreciation Reaches Record Levels
In a surprising turn of events, the car rental giant Hertz has seen an 89% increase in EV depreciation, with each car losing an average of $537 per month. This alarming trend has spurred Hertz to take drastic measures to mitigate its losses.
Clearance Event: Hertz’s Big Sell-Off
Hertz is on a mission to sell off 30,000 of its EVs by the end of 2024. What started as a promising experiment in offering electric vehicles to customers has now turned into a massive clearance event, as the company looks to offload its surplus inventory.
Bargain Alert: Pre-Owned Teslas for Under $20,000
For used car buyers in the market for an electric vehicle, Hertz’s fire sale presents a unique opportunity. The company is selling pre-owned Tesla Model 3s for under $20,000, making it an attractive option for those looking to go green on a budget.
The Rise and Fall of Hertz’s EV Initiative
Hertz’s foray into the world of EVs initially seemed like a smart move, with promises of lower maintenance costs and a more sustainable business model. However, as Tesla prices plummeted and depreciation soared, Hertz found itself in a precarious situation that led to its current sell-off strategy.
Managing Losses and Looking Ahead
As Hertz continues to navigate the fallout from its failed EV initiative, the company is focused on stemming its losses and regaining stability. With plans to sell off more vehicles through 2025 and reassess its fleet management strategies, Hertz is working towards a more sustainable future.
Implications for the EV and Rental Industries
The challenges faced by Hertz serve as a cautionary tale for both the EV and rental car industries. As electric vehicles become more popular, companies will need to find ways to manage their fleets more effectively and adapt to the changing market landscape. This shift may lead to more opportunities for consumers looking for affordable, used rental cars in the future.
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