TECH - Hertz's Mega Tesla Gamble Backfired Due To Sky-High Repair Costs Unusually High Accident Rates And Customers' Charging Anxiety Report Reveals | Benzinga
In a bold move aimed at disrupting the car rental industry three years ago, struggling Hertz Global Holdings (NASDAQ:HTZ) placed a massive order for 100,000 Teslas, betting big on electric vehicles (EVs). However, a new report sheds light on the reasons behind the strategy’s spectacular failure, raising questions about the viability of large-scale EV adoption for rental companies.
Ambitious Vision, Harsh Reality
The initial plan, led by new owners Tom Wagner and Greg O’Hara — two Wall Street finance executives who pulled Hertz out of bankruptcy — was brimming with ambition, according to a new Bloomberg report.
Mark Fields, the former Ford CEO who joined Hertz as a director, had this to say on the company’s electrification goals three years ago: “Our approach is very strategic and very deliberate in terms of how we want to disrupt ourselves, and hopefully disrupt the industry.” The vision included a nationwide charging network, partnerships with Uber, and Hertz positioning itself as an industry leader in the electric revolution.
However, this dream quickly unraveled. Tesla price cuts significantly devalued Hertz’s EV fleet. According to the report, “by piling into ...