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