Rental firm Hertz Global Holdings (HTZ.O) said on Thursday it would sell about 20,000 electric vehicles, including Teslas, from its U.S. fleet due to higher expenses related to collision and damage, and will opt for gas-powered vehicles.

Shares of the company, which also operates vehicles from Swedish EV maker Polestar among others, fell about 4%. Tesla’s (TSLA.O) stock was down about 3%.

Hertz also expects to book an about $245 million charge related to depreciation expenses from the proposed EV sale in the fourth quarter of 2023.

Hertz’s decision underscores the bumpy road EVs have hit as the growth rate on sales of those vehicles has slowed, causing carmakers like General Motors (GM.N) and Ford (F.N) to scale back production plans of those vehicles.

Morgan Stanley analyst Adam Jonas in a note said the car rental firm’s move was a warning across the EV space and it was another sign that EV expectations need to be “reset downward across the market.”

“While consumers enjoy the driving experience and fuel savings (per mile) of an EV, there are other ‘hidden’ costs to EV ownership,” Jonas added.

  • Snot Flickerman
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    6 months ago

    Ring me when I can buy it with $3k-5k in cash like I’ve been doing most of my damn life or I will continue to not give one fucking shit.

    $18k, what a fucking joke and a half, for a vehicle that’s way more costly to repair.

    • @ironhydroxide
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      96 months ago

      My fiat 500e is worth ~$5k.

      Simple car, minimal extra features when compared with new. And as of this year a decade old.

      I Love it, never had issues with it, and since I bought it 5 years ago has saved me it’s current value in not buying gas alone, not including oil changes, brakes, etc.

      I’m not saying ev is for everyone right now and I agree the current ev available new don’t seem to be likely to be good used cars. Just that this one seems to be one that doesn’t fit a lot of your complaints.

      • Snot Flickerman
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        6 months ago

        This one is finally going to be available in the US in 2024, but I have a deep dread that import costs are going to make it not so cheap of a used vehicle in the US.

        Europe and China have blown the US out of the water on affordable EVs and I guess maybe I should make clear I’m speaking very, very Amerocentrically on this issue.

        There’s literally a number of affordable Chinese EVs that don’t have a bunch of extra features, but the cost of getting one to the US and making it street legal is basically more than a conventional EV.

        • @ironhydroxide
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          76 months ago

          I think you misunderstood me. I have the gen1 500e. Not the facelift model. Mine is a 2013 model year.

          They were sold in California and Washington almost exclusively.

          • Snot Flickerman
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            6 months ago

            Wild, I was unaware of that. Looking at the Seattle craigslist, it looks like the Seattle area has a handful of used ones in that price range, 2015 models.

            • @[email protected]
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              46 months ago

              The older 500e was a “compliance car” that only gets about 80 miles of range and doesn’t charge very quickly m. Fine for going to the grocery or maybe work if it’s nearby. That’s about it.

              The 2024 model isn’t much better. Only about 120 miles of range and hella expensive for what it is. You’d be better off getting something else with fast charging and 200 miles or more of range.

              • Snot Flickerman
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                6 months ago

                I mean that’s fair about the earlier model, 80 miles would be tight, even for a local commuter.

                However, I really am a local commuter, it’s part of how I keep low miles on my vehicles post-purchase, and while 80 miles of range feels a little tight for a busy day. 120 miles, well… I think I’ve maxed out a daily trip of “getting shit done” at 100 miles, so in my particular use-case, 120 miles would leave me about a 20 mile buffer on my busiest of days.

                So, for me at least, the newer model is actually relatively in-line with my needs, but still several years away from being affordable used, considering the cheapest 2015 model I see is $5000 (with more of them in the $7k-10k range), and its a 9 year old vehicle. I’ll still be pushing my sixties before I can really afford one, likely. Which is in line with my original point: most poor people will spend their lives still driving ICE vehicles.

      • Snot Flickerman
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        6 months ago

        Funny because my local craigslist has fucking plenty of 2000-2010 vehicles in that price range. Plenty of private sellers still go in that range.

          • Snot Flickerman
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            66 months ago

            My Pontiac with less than 110k miles on it (only just broke 100k last year) begs to differ but you do you.

            • @[email protected]
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              26 months ago

              Tesla didn’t even start making the Model S until two years after Pontiac was killed off.

          • bluGill
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            36 months ago

            The 1970’s called - they want the idea that cars are worn out at 250k miles back.

            Modern cars with 250k miles are just broken in. They are not in perfect condition anymore, but with minimal maintenance most still have a lot of life left.

    • AnonTwo
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      16 months ago

      That’s just buying a used car. No new cars have ever been in the 3k-5k range…my car from like 10 years ago was in the 18k range.