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.

  • 👍Maximum Derek👍@discuss.tchncs.deEnglish
    15·
    1 year ago

    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.

    • Montagge@kbin.social
      5·
      1 year ago

      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.

      • 👍Maximum Derek👍@discuss.tchncs.deEnglish
        8·
        1 year ago

        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.

      • bluGill@kbin.social
        7·
        1 year ago

        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.