Hertz Unloads One-Third of Its EV Fleet, Citing Low Demand, High Repair Costs

The move will ‘eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs,’ Hertz stated.

A Hertz Tesla electric vehicle is on display during the Hertz Corporation IPO at the Nasdaq Market site in Times Square in New York on Nov. 9, 2021. Brendan McDermid/Reuters

Car rental company Hertz says it’s selling off 20,000 electric vehicles (EV), or one-third of its electric fleet, in the latest blow to the United States’ planned transition to EVs.

Hertz will take a $245 million charge from offloading the EVs and plans to “reinvest a portion of the proceeds from the sale of EVs into the purchase of internal combustion engine (ICE) vehicles to meet customer demand,” the Florida-based company said in a Jan. 11 Securities and Exchange Commission (SEC) filing.