Popular car rental service Hertz announced it will get rid of 20,000 electric vehicles from its fleet because of the high cost of fixing them.
The company decided to sell after discovering the vehicles were more expensive to repair after a collision than gas-powered cars.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter, thereby supporting the company’s decision to initiate the material reduction in the EV fleet,” Hertz said in a statement.
The stock market recoiled at the news of the sale, with Hertz shares falling 5% Thursday morning.
Hertz still offers dozens of EV options, from Teslas to BMW’s i3. Even after the sale, the company should have thousands of EVs available. Last year, the company bought around 160,000 EVs for use from Tesla and Sweden’s Polestar.
EV vehicles are typically much more expensive than gas-powered cars to maintain, especially after a crash, with estimates showing a $1,000 difference.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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