"When Hertz emerged from bankruptcy and went public in 2021, the rental car company made a multi-billion-dollar bet that the future of mobility pointed toward mass electrification and that the time to pivot was immediate. Hertz, the second-largest rental car company in the US, made a bulk purchase of 100,000 Teslas that year - estimated to cost around $4.2 billion and deemed the largest single purchase of EVs ever."
"That bet turned costly and was ultimately short-lived. By 2023, less than two years into its EV shift, Hertz had waved a white flag, stating in a 10-K filing at the time that it would "significantly reduce the size" of its global EV fleet. The result - nearly half a billion in write-downs and disposal losses alone - suggests American drivers are still reluctant to adopt an entirely new powertrain nearly three decades after the first mass-produced EV, General Motors' EV1, was put on the market."
"Hertz committed to expanding its EV fleet with a massive order of 100,000 Teslas - as well as orders from other EV brands such as Polestar and GM - and entered into an exclusive partnership with Uber, making part of the fleet available to a ride-hailing driver network."
Hertz made a large 2021 commitment to electrify its fleet after emerging from bankruptcy, placing a bulk order for 100,000 Teslas and ordering other EVs while partnering with Uber. The company moved quickly to convert rental inventory to electric vehicles. By 2023, Hertz announced plans to significantly reduce its global EV fleet and recorded nearly $500 million in write-downs and disposal losses. The reversal highlights the high financial risk of rapid fleet electrification, persistent consumer hesitation to adopt new powertrains at scale, and that demand for EVs depends heavily on price and broader conditions.
Read at Business Insider
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