“Green technologies” have gradually covered almost every area of ​​the economy, including transport. The car rental market is also experiencing an ecological revolution – the largest services, which have always been among the largest wholesale car buyers, have begun to increase the share of electric vehicles in their fleets, but this is fraught with difficulties, writes The Wall Street Journal.

One of the oldest rental services, Hertz Global Holdings, which went through bankruptcy at the peak of the 2020 pandemic, ordered 100,000 Tesla in October 2021 to offer customers “the largest fleet of electric rental cars in North America.” The deal led to an increase in the shares of both companies, and Tesla’s capitalization on this news exceeded $ 1 trillion for the first time.

Hertz rival, the Avis-Budget group, in early November, on a call with analysts, made only a vague statement that “as the situation develops, it will become more involved in the situation with electric cars,” and this was enough for the company’s stock to skyrocket doubled, and capitalization increased by $ 18 billion.

The WSJ notes that the desire for rental services to switch to electric cars is more driven by pressure from investors, rather than consumer demands. And this can lead to unpleasant consequences for the market:

Tenants will pay more for rent – buying an electric car for services is still much more expensive than a traditional car.
The paucity of fast charging stations and often the inability of drivers to use them can frustrate and even scare off potential customers.

It is difficult to predict how quickly an electric vehicle will lose value under heavy use. This is especially important for rental services that have to frequently renew their fleet by selling cars after reaching a certain mileage.

See also  WSJ: General Motors Invests $ 3 Billion In Electric Vehicle Production In Michigan

Find out more

The deal with Hertz will be the largest ever in the e-mobility market, expected to generate $ 4.2 billion for Tesla. Car rental services typically require large discounts, but the order price indicates Hertz is paying close to retail prices.


Please enter your comment!
Please enter your name here