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.
Ehhh, EVs, and modern cars in general, have a bit of a bad habit of adding a bunch of technology that makes what used to be pretty cheap repairs way more costly.
It used to be if you had a fender bender that tore apart your bumper, you were able to replace the bumper for pretty cheap, like maybe $100 just for the part, couple hundred for labor, because it’s just a big piece of molded plastic.
Now, the bumpers often house tons of sensors, often up to and including rear-view cameras. Now to replace your bumper and all the sensors, the bill is $5k.
Some of that’s not even that modern. I got in a small accident in my 2007 Prius and they had to replace the entire front of the body. The bumper, grill, and front quarter panels are all shipped as a single piece.
I think you might have gotten taken advantage of as I’m pretty sure the front quarter panel is not attached to the front bumper and can be replaced individually.
The grill I’m not sure about but I’m pretty sure I’ve disconnected the bumper from the front quarter panel on my 2007.
I could also be misremembering the details, it was 10+ years ago and insurance made me take it to the dealer for body work. I remember it was a lot of the front end though.
Edit: I suddenly remembered the details. When the bumper crumpled it broke the clips on the quarter panels that attached it to the frontend assembly. So they had to replace the quarter panels too.
Modern cars - even in 2007 - were designed to crumple in an accident. I’m not surprised that those panels also go enough damage that they need to be replaced.
Though of course I have no information on this incident. I’m just speculating based on general knowledge without knowing specific facts that are relevant.
That’s certainly possible!
Tesla touch sensitive, motorized door handles…. That are now everywhere… are a perfect example of those.
Even if the flush-handle made enough of a difference to justify it, motorising the thing so it pops out was stupidly over-engineering the problem.
Bumper? Try just replacing the tail light…
Replaced a taillight for a late model GMC Sierra. Dealer only item, $770 bucks list and had a CORE CHARGE on a taillight. Absolutely nuts.
Really informative video. Thank you.
I am kind of happy that I cheaped out on my car when I bought it. The only real issues I have had were that the speakers bugged out so that one side sounded like faulty wiring inside a tin can, and the Bluetooth connection made it impossible to make or take calls while driving as it blasted the caller or recipient with aggressive loud static. None of these really needed fixing, music is nice but not a must have and I could blame the car when I didn’t want to talk to people when I was driving or running errands. The new owner hasn’t seemed to notice or has no complaints…
Funnily enough, I thought I’d have to sell the POS at a loss, but I got money back that covered my car loan and afforded me an e-bike at least.
Tried with an EV car from a car pool for a while as well, but the e-bike was so much better.