EV in trouble.

'Green Nightmare: Hertz Accelerates Tesla Selloff as EV Fleet
Depreciation Slams Rental Giant'

<https://www.breitbart.com/tech/2024/11/16/hertz-accelerates-tesla-selloff-as-ev-fleet-depreciation-slams-rental-giant/>

'Rental car giant Hertz is dramatically expanding its electric vehicle
selloff program, with used Tesla Model 3s now available for under
$20,000 as the company grapples with mounting EV depreciation costs.
Hertz’s heavy investment in Tesla EVs has been a disaster causing
massive losses and the loss of its CEO.

Inside EVs reports that Hertz’s ambitious electric vehicle program has
hit another significant roadblock, with the company reporting an 89
percent increase in EV depreciation costs, amounting to $537 per vehicle
per month. The rental car company has committed to selling 30,000
electric vehicles from its fleet by the end of 2024, marking a stark
reversal from its earlier EV adoption strategy.

The company’s current predicament stems from its bold 2021 initiative to
“go green,” which included plans to purchase 100,000 Tesla Model 3s.
While this initial vision appeared promising, with benefits including
reduced maintenance costs and strong customer interest, the strategy has
since encountered numerous challenges that have forced a significant
course correction.

A primary factor in Hertz’s EV difficulties has been Tesla’s multiple
price reductions, which have severely impacted the residual value of the
rental fleet. These price cuts have created a ripple effect throughout
the used EV market, leading to accelerated depreciation of Hertz’s
electric vehicle assets. The company is now offering used Tesla Model 3s
at prices below $20,000, with additional savings possible through the
$4,000 federal tax credit available for used EVs.

The financial impact has been substantial. Beyond the depreciation
costs, Hertz has discovered that its Tesla fleet hasn’t delivered the
anticipated cost savings. Repair expenses have exceeded expectations,
and the company has experienced higher-than-anticipated collision rates
with its Tesla vehicles, resulting in significant restoration costs and
extended repair times.

These compounding factors have contributed to multiple quarters of
losses, resulting in the resignation of CEO Stephen Scherr earlier this
year.

The financial nightmare has Hertz’s new leadership to initiate a
widespread divestment of its EV fleet. The company plans to maintain
only enough electric vehicles to meet actual customer demand for EV
rentals, marking a significant scaling back of its original electric
mobility ambitions.

The selloff program will continue through 2025, with the company
attempting to minimize losses as used EV values continue to decline.
Current market prices for these vehicles appear to be stabilizing
between $20,000 and $25,000, providing some predictability to the
company’s loss mitigation efforts'