A MAJOR car rental company is selling off 10,000 of its EV fleet to buy petrol motors instead amid losses of £155 million.
The company saw share prices drop by almost a quarter as it reported weaker-than-expected financial performance.
Stock in Hertz tumbled by 24% last week and remains down by 18% as the brand unveiled plans to dump inventory thanks to slow demand.
Bosses announced that it would sell a further 10,000 of its highly-touted EVs, bringing the total number of sales planned for 2024 to 30,000.
CEO Gil West, who took the role this month after his predecessor’s resignation, admitted that the firm’s performance was “weighed” down by the cost of operating and maintaining the fleet.
The figures weren’t helped by a loss of £155 million in depreciation as tens of thousands of models declining in value remained on the books.
For example, Tesla Model 3s were listed on the site for around £22,000 in contrast to their £31,000 starting price when new.
The firm also struggled with the higher average repair costs for electric models compared to traditional motors when crashes do occur.
It was back in 2021 when Hertz unveiled a monster EV push, with plans to acquire 100,000 Teslas.
But low demand has now seen this commitment ditched, with a return to petrol power on the cards.
There are still around 3,000 electric cars listed for sale on Hertz’s second-hand marketplace but numbers on the rental sie are dwindling fast.
The company’s filing with the Securities and Exchange Commission read: “In response to management’s determination that the supply of EVs in the Company’s fleet continued to exceed customer demand, elevated EV damage and collision costs and a decline in residual values, the Second EV Disposal Group was classified as held for sale as of March 31, 2024.”
Mr West added: “Fleet and direct operating costs weighed on this quarter’s performance.
“We’re tackling both issues – getting to the right supply of vehicles at an acceptable capital cost while at the same time driving productivity up and operating costs down.”
Sun Motors has contacted Hertz for comment.