Car rental service Hertz will sell some of its Teslas and buy gasoline cars instead
The company explained that the reason is too expensive repair of electric vehicles
The American car rental service Hertz will sell 20 thousand cars from its electric vehicle fleet. The company will use the money to purchase gasoline-powered vehicles. This is due to the expensive repair of electric vehicles, TechCrunch writes, citing a company statement.
In addition, the demand for electric cars was not as high as the company expected.
The cars will be sold through 2024 "at huge discounts," the publication added, but did not specify prices.
The company will write off $245 million. Hertz told shareholders that it would be able to recoup the losses "in the coming years."
In 2021, Hertz announced plans to buy 100 thousand Tesla electric vehicles by the end of 2022. After the news, Tesla's market capitalization exceeded $1 trillion.
However, Elon Musk denied the agreement to supply this number of cars.
As of October 2023, Hertz had bought 35 thousand Teslas, and its entire fleet of electric vehicles numbered about 50 thousand.
Background. As a reminder, Tesla's stock fell due to Elon Musk's tweet about an unfinished deal with Hertz.
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