Hertz's initial strategy to embrace EVs was rooted in the idea of lower maintenance costs and higher profitability. However, unforeseen depreciation has led to significant financial losses, pushing the company into a major sell-off of its electric vehicle inventory.
The company is targeting the sale of an impressive 30,000 EVs by the end of 2024, with Tesla Model 3 units now available for under $20,000, showcasing the drastic decline in their market value from the original purchase prices.
As Hertz grapples with an 89% increase in EV depreciation costs, it has changed its approach to managing its fleet. The commitment is now concentrated on maintaining only a necessary inventory for rentals, significantly adjusting its business strategy for electric vehicles.
Hertz's ambitious plan to create a green fleet with a massive order of 100,000 Tesla Model 3s proved to be overly optimistic, as the company now faces the consequences of a collapsing used EV market.
Collection
[
|
...
]