So, Hertz, the car rental big shot, is doing something wild. They’re saying bye-bye to a bunch of electric cars, like 20,000 of them, and swapping them for good old gasoline rides.
Hertz Electric Cars are a Money Pit:
Turns out, Hertz tried to be all eco-friendly with electric cars, but it hit them where it hurts – in the wallet. Even though electric cars are cheaper to fix up, the repair costs and the way they lose value over time were giving Hertz a major headache.
Hertz CEO Spills the Beans:
The big boss at Hertz spilled the tea. He said fixing up a banged-up electric car costs double compared to a regular gas car. And to add to the mess, the value of used electric cars took a nosedive, thanks to companies like Tesla slashing new car prices.
Hertz : Blame it on Tesla? Maybe:
Hertz isn’t pointing fingers directly, but it’s pretty clear that Tesla is the troublemaker here. About 80% of Hertz’s electric rides are from Tesla, and when Tesla drops its prices, everyone else follows. That’s cool for buying new, but it tanks the resale value of used electric cars.
Money Talk – Hertz Big Loss:
Hertz’s is staring at a massive loss of around $245 million because these electric cars are losing their value like crazy. Each car is eating up about $12,250 in losses. Ouch!
Hertz’s Electric Gang:
Hertz’s wanted to be all fancy with electric cars, making up around 11% of their rental squad. But the financial mess and the crazy changes in the electric car game are making Hertz’s think twice.
Used Car Blues:
Here’s the deal – when new car prices drop, folks aren’t willing to shell out big bucks for used ones. That’s the pickle Hertz’s is in. The used electric cars are not making the money they used to.
Expecting a Big Blow:
Hertz isn’t pulling any punches. They’re telling the world they’re bracing for a whopping $245 million hit. That’s a lot of dough, and it shows just how tricky the electric car world is right now.
Tesla’s Got a Hand in This:
Without directly pointing fingers, Hertz’d is kinda saying, “Hey, Tesla, you’re making this harder for us!” With Tesla leading the charge in dropping prices, it’s causing a domino effect, messing up the whole used car scene.
What’s the Takeaway?
In a nutshell, Hertz is ditching some electric rides, going back to gasoline cars, all because of money trouble. They wanted to be green, but it’s turning into a pricey deal. The car game is changing, and Hertz’s is just trying to keep up.