Hertz Accelerates EV Fleet Reduction, Selling 30,000 Units Amid Financial Strain

The rental car company faces steep losses and depreciating asset values, prompting a significant increase in electric vehicle disposals.

Hertz plans to sell an additional 10,000 electric vehicles in 2024, bringing the total to 30,000, as it grapples with high depreciation costs and repair expenses.
The company reported a $195 million charge to vehicle depreciation in the first quarter, reflecting the financial impact of its EV strategy.
Shares of Hertz plummeted by over 20% following the announcement, marking a significant drop in market value.
The decision to reduce the EV fleet is part of a broader strategy to realign with market demand and reduce operating costs.
Analysts highlight the challenges faced by the EV rental market, suggesting that consumer readiness and market conditions have adversely affected Hertz's ambitious plans.