Well, it’s official – Electric Vehicle (EV) demand is so low and so uneconomical that rental companies have discovered how much pushing them “Hertz” the bottom line.
Hertz is selling 33% of its Electric Vehicle (EV) rental Fleet (20,000 used EVs – primarily Teslas), reversing its previous 2024 commitment to convert 25% of its fleet to EVs.
Turns out, travelers don’t want to spend their vacation time finding, then waiting in line for an EV charger only to spend 30-45 minutes charging an EV rental – especially when a cold snap causes EV ranges to drop by 30% - 50% - assuming drivers like to use the car heater.
What the article also implicitly revealed is that the average depreciation rate of its typical 2-year old Model Y & Model 3 Tesla fleet was $12,250 - 25% depreciation in just 2 years! Understandable after an owner discovers that the EV batteries cost $14,000 after their 8-year prorated warranty expires.
(Article reported that Hertz claiming a $245 million depreciation for 20K vehicles = $12,250/vehicle, Avg Model 3 & Model Y new vehicle price - $48,000, $12,250/$48,000 – 25.5%)
No wonder the Biden Administration is attempting to mandate them.
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Joe Wade
“Propaganda works best when those who are being manipulated are confident they are acting on their own free will.”
- Joseph Goebbels (Hitler’s Propaganda Minister)