Car rental service provider Hertz announced in 2021 that it would purchase 10 electric vehicles from Tesla, and later cooperated with BP, formerly British Petroleum, to build a charging network in the United States. However, it now seems to be intending to slow down the development of electric vehicle applications.
Hertz CEO Stephen Scherr explained in his third-quarter 2023 financial report that the company's deployment of electric vehicle application services will be slower than previously expected because the cost of purchasing and applying electric vehicles is still very high.
Stephen Scherr stated that the cost of repairing an electric vehicle is nearly double that of a traditional gasoline-powered vehicle. Furthermore, Tesla's previous price cuts for its electric vehicles have led Hertz to worry that purchasing a large number of electric vehicles will increase depreciation costs over time, leading the company to consider temporarily pausing its development of electric vehicle application services.
However, Stephen Scherr emphasized that Hertz will continue to invest in the transformation of its rental vehicle development model to electric vehicle applications, and will actively seek suitable solutions. For example, it may choose to cooperate deeply with Tesla to reduce risks such as electric vehicle procurement and maintenance costs.
According to the financial report released by Hertz, about 80% of the electric vehicles it currently offers for lease are Tesla models, which means that of the approximately 5 electric vehicles it currently owns, nearly 3 are Tesla models.
