Via Reader Mike L (thankee, squire), comes this little snippet that may just be the signal of something or other:
Hertz, which has made a big push into electric vehicles in recent years, has decided it’s time to cut back. The company will sell off a third of its electric fleet, totaling roughly 20,000 vehicles, and use the money they bring to purchase more gasoline powered vehicles.
Electric vehicles have been hurting Hertz’s financials, executives have said, because, despite costing less to maintain, they have higher damage-repair costs and, also, higher depreciation.
“[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle,” Hertz CEO Stephen Scherr said in a recent analyst call.
And EV price declines in the new car market have pushed down the resale value of Hertz’s used EV rental cars.
I lost count how many whammies are contained in the above, but it’s making parts of me tingle, and in a good way. Okay, let me count the ways:
Higher damage-repair costs, higher depreciation and lower resale value.
Any one of those Bad Things would make me (as Hertz) want to cut back on the Duracells. All together? Short-Circuit City.
Ol’ Elon’s not gonna be happy, because if Hertz sneezes, the entire rental business gets diarrhea.
And common sense pokes its head above the parapet.