1 week Ago By Rebecca Lee
A MAJOR rental car company has revealed that it 's reducing its collection of EVs after suffering expensive costs for electric models . Hertz will reduce its selection of EVs by an additional 10,000 vehicles than it planned, selling off 30,000 electric automobiles this year. The rental car company planned to buy around 100,000 Teslas during the pandemic in hopes of increasing people's traveling habits in 2021, Auto Week reported.
The 30,000 EVs it will now be getting rid of is 10,000 more than Hertz initially planned. The rental car company reported a loss nearly three times worse than analysts expected, Bloomberg reported. That's about one-third of the company's electric vehicle fleet.
The company said that it lost $1.28 a share contrary to analyst expectations for a loss of 44 cents a share. The company is selling the cars as a part of its EV downsizing after lots of its cars plummeted in value.
Hertz cited high repair costs and weak demand from its customers in connection to its decision. Now the rental company is quickly trying to get rid of EVs after a series of major losses. "The company incurred a $195 million charge to vehicle depreciation to write down the EVs held for sale," the rental car giant said in a filing.
"Which were remaining in inventory at quarter-end to fair value and recognize the disposition losses on EVs sold in the period." The EV charging experience has raised some issues on the consumer side of things. Because of the combination of EV problems for .
