1. Hertz filed for bankruptcy during the height of the Covid 19 pandemic in May 2020.
2. Hertz’s new owners planned to make the company EV-centric by ordering 100,000 Teslas and building a charging network.
3. The EV strategy backfired as Tesla prices dropped, leading to high repair costs, crashes, and a decision to unload 20,000 EVs.
The story of Hertz’s failed attempt to incorporate electric cars into its fleet is a cautionary tale of mismanagement and incompetence on Wall Street. After filing for bankruptcy in 2020, Hertz was purchased by individuals with no experience in the rental car industry, who decided to make a bold move towards EVs. The company announced an order for 100,000 Teslas and planned to build a nationwide charging network. However, the strategy backfired when Tesla prices dropped, leading to a spike in repair costs and a tripling of depreciation expenses.
Internal warnings about the risks of betting big on EVs were ignored, and Hertz ended up losing billions of dollars due to crashes, repair delays, and plummeting resale values. The decision to unload 20,000 EVs marked the end of Hertz’s electric car experiment. The debacle highlights the importance of understanding the practical challenges of transitioning to electric vehicles and the consequences of reckless decision-making.
The Hertz story serves as a stark reminder that wealth does not equate to intelligence, and the ignorance of the company’s owners set back the EV revolution in America. It also underscores the need for proper education and training for those adopting electric vehicles, as many customers were ill-prepared to handle the nuances of driving and charging an EV. Ultimately, the Hertz experience should not deter others from considering electric cars, but rather serve as a cautionary tale of the pitfalls of moving too quickly without a comprehensive understanding of the technology.