Tesla stock dipped 2% after rental giant Hertz dumping EVs, including Teslas, for gas cars.
Rental firm Hertz Global Holdings is selling about 20,000 electric vehicles, including Tesla, from its U.S. fleet about two years after a deal with the automaker to offer its vehicles for rent, in another sign that EV demand has cooled.
Hertz will instead opt for gas-powered vehicles, it said on Thursday, citing higher expenses related to collision and damage for EVs even though it had aimed to convert 25% of its fleet to electric by 2024 end.
CEO Stephen Scherr had last year at the JPMorgan Auto Conference flagged headwinds from higher expenses for its EVs, particularly Teslas.
Hertz even limited the torque and speed on the EVs and offered it to experienced users on the platform to make them easier to adapt after certain users had front-end collisions, he said.
Hertz also expects about $245 million in charges related to depreciation expenses from the EV sale in the fourth quarter of 2023.
