Hertz plans to make a quarter of its fleet electric by the end of next year, reported CNBC. Just 10% of the rental-vehicle company’s 500,000-unit fleet is currently EVs.
Hertz has deals with General Motors, Polestar and Tesla to buy 330,000 vehicles, the news provider reported.
Recent EV price cuts by Tesla and other EV makers helped encourage the transition, Hertz indicated on its recent earnings call, said CNBC, which indicated Hertz expects to do 2 million EV rentals this year, five times last year’s volume.
Hertz hangs onto EVs longer than gas-powered models, CNBC reported, thereby lowering depreciation expense.
EVs tend to be popular with ride-share drivers who lease them for short periods, CNBC reported, a segment it said Hertz has indicated can cushion it from seasonal downturns.
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