Rental firm Hertz Global Holdings said Thursday it might sell about 20,000 electric vehicles from its US fleet resulting from higher expenses related to collision and damage, and can go for gas-powered vehicles.
Shares of the corporate, which operates vehicles from Elon Musk’s Tesla and Swedish EV maker Polestar amongst others, fell about 3% at market open.
Hertz had said it might order 100,000 Teslas by the top of 2022 and followed that with a call to purchase as much as 65,000 units over five years from Polestar.
“Expenses related to collision and damage, primarily related to EVs, remained high within the quarter…,” Hertz said in a regulatory filing on Thursday.
The corporate had previously set a goal for 25% of its fleet to be electric by the top of 2024.
Hertz expects about $245 million of incremental depreciation expenses from the proposed sale within the fourth quarter of 2023 and warned of successful to adjusted corporate core profit for the period.
The corporate said it might proceed to give attention to improving profitability for the rest of its EV fleet.
Hertz’s used automobile website lists greater than 700 EVs on sale including BMW’s i3, Chevrolet’s Bolt and Tesla’s Model 3 and Model Y SUVs.
