EVs Dumped by the Thousands

(RightIsRight.co) – Is the liberal Electric Vehicle dream of overcoming gas-fueled vehicles finally coming to an end?

Recent reports from Hertz, one of the leading rental car companies in the U.S., show they’re reducing their electric vehicle (EV) fleet due to lower-than-expected demand and high maintenance costs.

This decision marks a significant shift from the company’s 2021 announcement to purchase 100,000 Tesla Inc. vehicles.

According to Bloomberg News, the waning demand for EVs in the U.S. became evident as sales growth slowed, increasing by only 1.3% in the last quarter of 2023. Consumers have expressed concerns about the high costs of EVs, the lack of adequate charging infrastructure across the U.S., and the reduced driving range of EVs in extreme weather conditions.

Hertz CEO Stephen Scherr acknowledged the challenges in managing the elevated costs associated with EVs.

The company’s move to offload over 20,000 electric vehicles is seen as an effort to align their supply with the anticipated demand for EVs, as stated in a regulatory filing.

Morgan Stanley analysts view Hertz’s decision as a cautionary indicator for the auto industry, suggesting that the popularity of electric vehicles may be overestimated and that growth expectations should be adjusted accordingly.

This development aligns with concerns raised by nearly 4,000 U.S. auto dealers in a letter to President Joe Biden.

The dealers questioned the feasibility of the President’s goal to have two-thirds of new cars sold by 2032 be electric. They pointed out that, despite a range of available EV options, demand is not keeping pace with the influx of battery electric vehicles (BEVs) at dealerships.

Even with significant price reductions, manufacturer incentives, and government subsidies, BEVs are accumulating on lots faster than they can be sold.

The dealers emphasized their close understanding of customer preferences, noting that while there is a market for EVs and they are eager to meet that demand, the majority of customers are not yet ready to transition to electric vehicles.

This sentiment reflects a broader hesitation within the market to fully embrace electric vehicles at the current juncture.