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Summary.
This strategy change at
In the news.
- The sale comes in the face of higher repair costs and faster depreciation of EVs.
Hertz CEOStephen Scherr outlined the issues during a recent financial analysis.
Repairs are twice as expensive
Zoom in. Repairs on electric vehicles can be up to twice as expensive as those on conventional internal combustion engine vehicles.
Hertz expects a$245 million loss from depreciation on its electric vehicles, an average of$12,250 per car.-
Price drops on new EVs, especially by
Tesla , are having a dampening effect on the resale value of used EVs.-
In the
U.S. , the price of a usedTesla Model X fell 36 percent from a year earlier. -
In
Belgium ,Tesla lowered the price of a Model Y to below40,000 euros . The price reduction makes buyers eligible for the5,000 euro premium promised by the Flemish government. -
In
the Netherlands ,Tesla has lowered the price of a new Model Y by about €5,000 to €44,990. This currently makes a newTesla cheaper than a used one. This is causing major problems for used and leasing companies, writes Autoblog.nl.
-
In the
Zoom out. This situation illustrates the impact of pricing strategies of manufacturers like
- With an 80% share of
Hertz's EV fleet,Tesla plays a key role in this development. -
The maintenance and repair challenges specific to
Tesla , caused by a limited supply of parts and specialized technicians, highlight the major challenges in the EV sector.
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