Hertz, bless their ambitious little hearts, thought they could revolutionize car rentals with a fleet of 100,000 Teslas. Fast forward a couple of years, and they’re offloading those EVs faster than you can say “battery range anxiety.” Turns out, most folks renting cars don’t want to spend half their vacation searching for a charging station—or worse, waiting in line behind someone who parked their Tesla and disappeared for a leisurely lunch.
The rental giant has been quietly selling its Teslas at jaw-dropping discounts. One Reddit user recently snagged a 2023 Tesla Model 3 for just $17,913—less than half the retail price of $38,990. And while that’s great news for bargain hunters, it’s a financial facepalm for Hertz.
Why the fire sale? According to Hertz, customers overwhelmingly prefer gas-powered cars. Who knew the average road tripper wasn’t clamoring for an EV with “limited range”? The company has already shifted gears, announcing plans to pump the proceeds from Tesla sales into more traditional gas guzzlers.
Hertz’s EV experiment was part of a lofty goal to electrify 25% of its fleet by the end of 2024. High repair costs and lack of consumer interest have made Hertz re-evaluate their EV plan. But after hemorrhaging money—$1 billion in fleet devaluation last quarter alone—it’s safe to say the dream is dead. Depreciation costs on their EV fleet surged 89% in a year, leaving analysts clutching their spreadsheets in horror.
This misstep isn’t just a blow to Hertz’s ego. The company missed revenue estimates and reported a wider-than-expected loss in the third quarter. Former CEO Stephen Scherr tried to spin it as a bump in the road but ultimately admitted defeat, announcing plans to ditch 30,000 Teslas by year’s end.
Adding salt to the wound, even Uber drivers—once the target market for Hertz’s EV rentals—are balking. Limited range and the logistical nightmare of finding chargers aren’t exactly ideal for rideshare work.
Hertz’s pivot to EVs may have looked good in glossy ads featuring Tom Brady, but in the end, the numbers tell a harsher truth. At least now, budget shoppers can grab a cheap Tesla while Hertz quietly returns to the comfort of gas-powered reliability.
