In a setback for the Biden administration's efforts to promote the use of electric vehicles (EVs), rental car company Hertz announced plans to sell off its fleet of 20,000 electric cars due to concerns over depreciation and rising repair costs. Hertz, one of the world's largest rental car companies, intends to use the funds generated from this sale to invest in more gas-powered vehicles to meet customer demand.
The decision by Hertz to unload their EVs could be seen as a blow to the growing EV market. The rental car giant had previously committed to purchasing 100,000 Teslas in 2021 as part of its strategy to build up its electric vehicle fleet. However, the cost of Teslas dropped significantly in 2022 and early 2023, adversely impacting the company's financial calculations.
