- Following Hertz's latest earnings report, the company witnessed positive results, with first-quarter revenue reaching $2 billion and per-share earnings of 39 cents, surpassing the projected 21 cents per share. However, beyond these immediate figures lies the company's strategic adaptation to significant shifts in transportation, tourism, and energy: Hertz is embracing electric vehicles.
- With the aim of increasing its electric vehicle (EV) presence, the company intends to raise the percentage of EVs in its 500,000 vehicle fleet from the current 10% to 25% by the end of 2024. To achieve this target, Hertz plans to accelerate its vehicle purchases through agreements with Tesla, Polestar, and General Motors. These agreements were initiated last year, following the introduction of Hertz's initial fleet of Teslas in 2021, with previous EV rental experiments spanning the past decade.
Why it matters
EVs have the potential to transform the rental car business model. Hertz benefits from lower depreciation expenses for EVs compared to internal combustion engine vehicles by keeping them longer and leveraging their cost efficiency in rideshare programs. Rental car companies like Hertz charge a premium for many EVs and retain them for extended periods. However, specific pricing details were not disclosed by Hertz.
