Hertz, a major U.S. rental car company, is selling off tens of thousands of electric vehicles due to low demand and high repair costs, despite previously planning to buy 100,000 Tesla vehicles.
The decision reflects the slowing growth in EV sales, driven by concerns over high costs, limited charging infrastructure, and reduced driving range in extreme weather.
Hertz hopes to balance supply and demand by selling over 20,000 electric vehicles. (Trending: Anthony Fauci Questioned About Evidence Behind COVID Restrictions)
Bloomberg News reported, “The dramatic about-face, after Hertz announced plans in 2021 to buy 100,000 Tesla Inc. vehicles, underscores the waning demand for all-electric cars in the US.”
“EV sales growth slowed sharply over the course of 2023, rising just 1.3% in the final quarter as consumers were put off by high costs and interest rates,” the outlet continued.
Hertz Chief Executive Officer Stephen Scherr, said, “The elevated costs associated with EVs persisted.”
“Efforts to wrestle it down proved to be more challenging,” he continued.
This move has prompted warnings from analysts about the realities of the electric vehicle market and challenges to meeting ambitious government targets for electric vehicle adoption.
Morgan Stanley analysts said, despite possessing a desire for an electric vehicle, “the reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [Battery Electric Vehicle] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.”
Auto dealers have also expressed concerns about the mismatch between electric vehicle supply and customer demand, despite significant incentives and price cuts.
In a letter to the White House, a group of dealerships wrote, “Mr. President, no government agency, no think tank, and no polling firm knows more about the automobile customer than us.”
“Some customers are in the market for electric vehicles, and we are thrilled to sell them. But the majority of customers are simply not ready to make the change,” the letter continued.
Most Popular:
Clintons Scramble To Delete Embarrassing Photo, But Were Too Slow
Fauci’s COVID Missteps Are Coming Back To Haunt Him
Fox News Star Accused Of Major Scandal
