this post was submitted on 11 Jan 2024
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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.

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[–] TheDannysaur@lemmy.world 14 points 10 months ago (12 children)

I wouldn't be surprised if the hidden costs aren't just around time. EVs are great, generally, but they're sort of purpose specific. Having a 250 mile range (at best), people generally not knowing where to recharge, the additional time to recharge, not being able to charge at a lot of hotels, severely limited long range ability (without a lot of stops)... All of those add up to a poor experience. I can't think of a time where I rented a car and an EV would have been an option that I wanted. MAYBE if I only needed to go as much as a single charge would allow me, but this is just not a good fit for rentals, in my opinion.

[–] ReallyKinda@kbin.social 0 points 10 months ago (2 children)

Electric cars are a lot heavier and thus more deadly than gas vehicles—I wonder if the costs they mention related to collisions are largely insurance related

[–] reddig33@lemmy.world 15 points 10 months ago

It’s because Tesla repair costs are sky high and they never have parts in stock. It’s not an EV problem. It’s a Tesla problem.

[–] bufordt@sh.itjust.works 1 points 10 months ago (1 children)

And by a lot you mean 10-15% heavier?

[–] girlfreddy@lemmy.ca -2 points 10 months ago (3 children)

Source

For example, the 2023 GMC Hummer EV, a full-size pickup, weighs more than 9,000 pounds, sporting a 2,900-pound battery. In comparison, the 2023 GMC Sierra, also a full-size pickup, weighs less than 6,000 pounds, according to Kelley Blue Book.

Traffic safety is particularly concerning. In crashes, the "baseline fatality probability" increases 47% for every 1,000 additional pounds in the vehicle — and the fatality risk is even higher if the striking vehicle is a light truck (SUV, pickup truck, or minivan), according to a 2011 study published by the National Bureau of Economic Research.

[–] st3ph3n@midwest.social 2 points 10 months ago

The Hummer EV is a pretty ludicrous vehicle, and not typical. For a more apples to apples comparison, the gas-powered Hyundai Kona weighs 3005 to 3483 lbs, while the EV version of the same car weighs from 3571 lbs to 3891 lbs, depending on configuration.

[–] TheIllustrativeMan@lemmy.world 1 points 10 months ago

Why don't we compare the Hummer EV to... a Hummer H2? You know, the much smaller, older ICE one that was also 8,600 lbs?

[–] bufordt@sh.itjust.works 1 points 10 months ago

Sure, let's act like Full Sized pickup is a meaningful term. They compared the Hummer EV to the smallest line of Sierra trucks, the 1500.

The Sierra 3500, also a full sized pickup tops out at 8300 pounds. The Cybertruck tops out at 6843 pounds, so I guess I could use that to say that EVs are lighter than ICE vehicles.

The F150 to F150 Lightning is probably the best comparison, and it shows the lightning to be about 17% heavier.

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