Hertz's Tesla Bet Is A Cautionary Tale
A few years back, Hertz took a bold step by purchasing 30,000 Teslas, aiming to electrify 20% of its rental fleet. However, this gamble backfired due to unforeseen depreciation and high maintenance costs. Now, Hertz is trying to offload these EVs, which seemed like great used car deals initially, especially with the $4,000 used EV tax credit. Yet, high-mileage ex-rental Teslas are proving problematic.
Take Bijay Pandey from Texas, who bought a 2022 Model 3 Long Range for $25,000. He soon discovered serious issues, including a damaged high-voltage battery pack, costing over $13,000 in repairs. Hertz agreed to swap his car, but the wait was long and frustrating.
This scenario is not unique. Online forums are buzzing with warnings about buying used Teslas from Hertz due to the intense wear and tear these rentals endured. Many recommend purchasing used Teslas directly from Tesla instead. Hertz plans to sell the remaining 20,000 Teslas by year-end, but buyers should proceed with caution.
Why This Matters To Our Industry:
This highlights the potential pitfalls of integrating electric vehicles (EVs) into your fleet. Hertz’s experience with unexpected depreciation and high maintenance costs serves as a valuable lesson. If a giant like Hertz struggled with these challenges, it's crucial to thoroughly evaluate the long-term costs and benefits before making a big investment in EVs.
Our Take:
Don’t get blinded by the allure of EVs without doing your homework. Hertz's fiasco shows that while EVs are great for sustainability, they can come with hidden costs that might hit your bottom line hard. If you’re considering adding EVs to your fleet, prioritize understanding the true cost of ownership, including maintenance and potential depreciation, to avoid costly surprises down the road.
Elon Musk has recently spoken out against US government tariffs on Chinese electric vehicles, calling them “not good” and market-distorting.