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Hertz is selling off a third of its electric vehicle fleet , which is preponderantly made up of Teslas , and will buy gun car with some of the money it progress to from the sale . The party cited lower demand for electron volt and mellow - than - expect repair price as rationality for the determination .
The sell - off began last calendar month and will go forward through 2024 . As some galvanising vehicle - focus blogs have noted , they ’re being sell atsteep price reduction . The company say ina Thursday forenoon filingthat it is recognizing “ or so $ 245 million of incremental nett disparagement expense related to the sale , ” which is a dry way of say it ’s taking a bath on the determination . Hertz enjoin shareowner that it believes it will be capable to make up that red ink in the coming years .
Just two geezerhood ago , Hertz announced plans to buy 100,000 eV from Tesla by the death of 2022 . The news helped Hertzdistance itself from a disorderly bankruptcyand pushed Tesla ’s valuation over the $ 1 trillion mug for the first time . But it never happened .
Instead , as of October 2023 , Hertz had only purchased 35,000 Teslas and its entire galvanic fleet included about 50,000 EVs total . Scherr maintained at the time that his companionship was “ confide ” to buy 100,000 car from Tesla , even while he admit that the automaker ’s price cuts had shrunkthe value of its minor EV fleet .
Hertz did n’t just overpromise with Tesla . It announced plans in 2022 to buy up to175,000 EVs from General Motors , andanother 65,000 from Polestar . The company did not say Thursday how its decision to betray a third of its EV fleet will bear upon those plans , and did n’t immediately respond to a request for comment .
