Why Hertz’s Bet On Tesla Isn’t Paying Off In The U.S.

Why Hertz’s Bet On Tesla Isn’t Paying Off In The U.S.

In October 2021, Hertz publicly announced it intended to buy 100,000 Tesla vehicles. Newly emerged from bankruptcy, Hertz had a bold plan to lead the EV revolution in car rental. Shares of Hertz soared, as did Tesla’s – its market value hit $1 trillion. First mover advantage aside, it would help Hertz distinguish itself in an industry plagued by commoditization. But only a couple of years in, the rental company’s EV strategy is facing some serious challenges: pricing troubles, skyrocketing repair costs and low resale values. Meanwhile big rental rivals are holding back on EVs. Hertz’s investors are divided over what to do next: either kill, or at least pause the EV initiative, or try to find a way to make it work. Meanwhile, the company is planning to reduce the share of Tesla vehicles in its fleet and buy more from other automakers.

1:38 – Chapter 1: A bold bet
7:07 – Chapter 2: What went wrong
11:21 – Chapter 3: Fork in the road

Producer: Robert Ferris
Editor: Darren Geeter
Animation: Mallory Brangan
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images
Additional sources: Enterprise, Auto Rental News, Avis, Tesla, Deutsche Bank

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Why Hertz’s Bet On Tesla Isn’t Paying Off In The U.S.

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