Just over two years after announcing plans to purchase 100,000 Teslas and another 65,000 electric cars from Polestar for its rental fleets, Hertz is planning to sell off 20,000 of its EVs, according to a federal regulatory filing posted Thursday. The rental company noted the high cost of collision repairs and lower demand from consumers as the primary drivers for the EV divestment. Hertz, in turn, plans to use some of the income from those sales to purchase more new gas-powered vehicles.
The electric-car rental demand issue may have less to do with the cars themselves and more to do with the unique traits of EVs. An average renter is looking for a car that will get them around over the course of a trip rather than a compelling experience in that car. For those customers, the complexities of an EV may prove to be more of a frustration than a charm.
Renting a Tesla Model 3, for instance, comes with all the frustrations of the screen-heavy Tesla user interface without any of the time to get used to those adjustments that a buyer would have. Charging is an even bigger issue: Not only do consumers without EV experience who rent a Polestar 2 or a Tesla Model 3 have to figure out how to charge a car while on the road, they also have to figure out two completely different charging ecosystems depending on which car they get.
Even though Hertz plans to offload much of its electric fleet, the company says it “will continue to execute its strategy around EV mobility and offer customers a wide selection of vehicles,” according to the filing. Hertz says it will grow its charging infrastructure, work closer with electric car manufacturers to lower parts and labor costs, and continue to help educate customers about EVs.
Hertz currently lists 548 Tesla Model 3s and zero Polestar models on its direct sales website. The most affordable Teslas are currently selling for just over $20,000, but screenshots shared by Electrek on Wednesday suggest that other Model 3s have previously been listed for as low as $17,700 before a potential tax credit for used EVs.