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.
The main hidden cost is that regular ass people aren’t going to be able to afford one for another twenty years or more.
I’m in my forties, and I’m still driving a car from 1999.
I have never owned a new car, all my vehicles have been used, and I’ve bought them in cash, outright, no car payment.
The prices will never come down on a used EV enough for me to justify the purchase, especially since I can find cars from 20 years ago that don’t have excess features that will cost me more money to repair. Like a bunch of rear-view cameras and sensors, often placed inside the bumper, make a small fender bender into a costly repair bill because it’s no longer just a bumper, it’s a bumper with all kinds of expensive shit inside of it.
You can’t find an EV with roll-down windows, no extras, and just a radio. They don’t fucking make 'em. EV’s were just the first step of the auto industry fully embracing that all vehicles are luxury, and economy cars just don’t exist anymore.
Add to all this that charging networks haven’t exactly rolled out nationwide and you’re left with feeling stuck with ICE cars longer than you’d like.
I would have loved an EV a decade ago, but literally nobody is making an EV I can fucking afford before I croak.
Long story short: As with everything, the blame will be put disproportionately on the poor while ignoring that buying an EV is something most poor people simply cannot afford.
EVs are a lot cheaper to run so maybe you shouldn’t concentrate exclusively on the sticker price. Also, in the long term EVs will be cheaper to buy than gas cars too. Right now the limited availability of batteries puts limits on EV adoption. That will change in the next few years. Then EVs will be both cheaper to buy and to run than gas cars. The problem of increasing complexity and worse repairability applies to all modern vehicles, regardless of drive train.
The problem of increasing complexity and worse repairability applies to all modern vehicles, regardless of drive train.
EV’s were just the first step of the auto industry fully embracing that all vehicles are luxury, and economy cars just don’t exist anymore.
Golly gee whillickers, it looks like I’m already aware of that.
Also, in the long term EVs will be cheaper to buy than gas cars too.
Once again, not before I fucking die. I’ve been waiting for one most of my adult life.
Right now the limited availability of batteries puts limits on EV adoption. That will change in the next few years.
How, by couping a country with a lot of lithium like Bolivia?
How, by couping a country with a lot of lithium like Bolivia?
For starters… by getting rid of lithium. Alternatives might have a lower energy density in theory but also not the thermal issues of lithium-ion batteries. Which means you can pack them more densely without issues, or -even better- produce bigger cells instead of stacking small ones. So in practice they will perform on a similiar level but cheaper, making lithium-based batteries a niche product for high-end luxury items where you pay much more for a little bit of extra performance.
Next Step: You have batteries that don’t run hot or might explode when damaged anymore? Stop putting them insinde the car but make the battery an integral part of the frame.
And that’s just the theoretical side. The economic reality is that a lot of the benefits of lithium batteries are not based on the tech itself but coming from a decade of experience (and optimizations) in manufacturing. A lot of that experience is partly applicable to alternatives so they will reach a similiar maturity in a fraction of the time (= just a few years).
I wouldn’t be surprised if the hidden costs aren’t just around time. EVs are great, generally, but they’re sort of purpose specific. Having a 250 mile range (at best), people generally not knowing where to recharge, the additional time to recharge, not being able to charge at a lot of hotels, severely limited long range ability (without a lot of stops)… All of those add up to a poor experience. I can’t think of a time where I rented a car and an EV would have been an option that I wanted. MAYBE if I only needed to go as much as a single charge would allow me, but this is just not a good fit for rentals, in my opinion.
100% this. My sister had a nightmare rental experience. The rental company was sold out on gas cars and gave her a Hyundai EV.
She had to drive about 200 miles through some remote areas. When she left, the car said 300 miles. She figured 50% was a good enough buffer. She started driving and range dropped quickly. About 100 mi into the trip, it was saying 40 miles left.
She was in the middle of nowhere with spotty cell reception worried that she would be stranded in the desert. She was afraid enough to call her daughter and say, “If you don’t hear from me, send help.”
The only charger she could find was at a Hyundai dealer. She just made it, but had to sleep in the car until the next morning when they opened to get the car charged.
She swears never again.
That’s not an EV problem, but one of infrastructure.
This is like complaining about useless combustion engines when driving somewhere with no gas stations…
If the infrastructure doesn’t support EVs for a journey, that’s an EV problem.
The argument here is always that EVs need to solve a problem to become viable. No, they don’t. They don’t need to develop EVs with insane ranges to adapt to a non-existent infrastructure.
That’s just diversion. Fix the infrastructure instead of pretending that EVs need fixing imaginary problems first.
