On Tuesday, Autoblog reported the following:
Electric vehicles were already considered unappealing by a section of the car-buying public. Now their image could take another hit as rental giant Hertz dumps 20,000 of them, mainly Teslas, for gas-powered cars.
Hertz, the largest U.S. fleet operator of EVs, has blamed the sale on high repair costs and weak demand for the vehicles it offers on rent.
Analysts and industry experts believe the move will affect the second-hand market for EVs and dissuade buyers who are already rethinking big purchases due to higher borrowing costs.
“The larger impact of Hertz EV fire sale is the perception hit to the technology,” said Karl Brauer, analyst at used-car aggregator iSeeCars.com.
“Mainstream consumers are already hesitant to buy an EV, and this news only supports their concerns.”
The higher costs associated with repairing EVs stem from a lack of sufficient expertise in dealing with such vehicles and challenges in getting the replacement parts as they are still very new, industry experts said.
Hertz CEO Stephen Scherr flagged elevated costs caused by damages to certain EVs, particularly Teslas, last year at a conference. In announcing the liquidation of Hertz’s EV fleet, Scherr also blamed the high repair costs on Tesla for not offering to discount bulk purchases of replacement parts the way other automakers do.
Tesla and Polestar, whose cars are popular with car rental firms, did not respond to a request for comment. Car rental firms Avis and Enterprise also did not respond to a query on their EV strategy.
I love the concept of an electric vehicle. I love the idea of being able to park my car in the garage at night and have it fully charged in the morning–never having to stop for gas. However, I worry about fire danger–I don’t want my house to burn down because I didn’t want to buy gas. I also worry about the rising cost of electricity and how economical an electric car would be in the future. I also worry about having to spend thousands of dollars to replace a battery on a used car. Until those issues are addressed fully, I will simply stand back and admire the acceleration that comes with an electric car.