Overview

• Hertz Global Holdings Inc. plans to sell off a third of its electric vehicle (EV) fleet, approximately 20,000 vehicles, due to weak demand and high repair costs.
• The company will use the proceeds from the sales to purchase more gasoline-powered vehicles to meet customer demand.
• The decision comes after Hertz reported higher depreciation and damage than expected to its EVs, amounting to $245 million in costs.
• Hertz had previously set a target for 25% of its fleet to be electric by the end of 2024, a goal that will now take longer to achieve.
• The move is seen as a setback for the EV industry, with some analysts suggesting it could signal a slowdown in EV adoption.