From Nasdaq MarketSite:

Car rental company Hertz Global Holdings has decided to sell around 20,000 electric vehicles, including Teslas, from its fleet, creating differing views among Tesla enthusiasts. Wedbush analyst Dan Ives called the decision a “black eye moment” for Hertz, but he downplayed the impact on Tesla, predicting no significant effect on short-term sales.

On the other hand, Ross Gerber, president of Gerber Kawasaki Wealth and Investment Management and a Tesla investor, believes Hertz’s decision is another setback for the electric vehicle giant. He mentioned the financial impact on Hertz, noting the company is selling off a third of its Tesla fleet, resulting in a $250 million loss in the value of their Teslas.

Hertz announced its plan to sell approximately 20,000 EVs from its U.S. fleet throughout 2024, citing high repair costs as the driving factor. The company intends to replace these electric vehicles with combustion engine-powered cars, aligning with its previous announcement emphasizing the financial advantages of a fleet consisting mainly of traditional combustion engine vehicles. At the end of the third quarter, EVs comprised 11% of Hertz’s total fleet, with Tesla representing four out of every five EVs in their lineup.

The decision to sell its electric vehicles marks a significant shift for Hertz, coming less than three years after it ordered 100,000 Tesla Model 3s and recruited seven-time Super Bowl champion Tom Brady as its celebrity spokesperson to promote its focus on electric vehicle rentals. This development also reflects Tesla’s ongoing price cuts and the heavy competition in the electric vehicle market.

The move has led to conflicting views even among Tesla bulls and enthusiasts, sparking a debate on the impact of Hertz’s decision on Tesla’s short-term sales and the electric vehicle market. Analysts predict no significant effect on Tesla, while Tesla investors such as Ross Gerber see it as another setback for the electric vehicle giant. Hertz’s decision reflects the significant challenges and changes in the electric vehicle market, particularly in the face of competition and shifting consumer demand for electric vehicles.



Read more: Tesla Bulls At Odds After Hertz’s EV Selloff: ‘Blow’ For Musk’s Company Or ‘Black Eye Moment’ For Car Rental Firm?