In October 2021, Hertz publicly announced it intended to buy 100,000 Tesla vehicles. Newly emerged from bankruptcy, Hertz had a bold plan to lead the EV revolution in car rental. Shares of Hertz soared, as did Tesla’s - its market value hit $1 trillion. First mover advantage aside, it would help Hertz distinguish itself in an industry plagued by commoditization. But only a couple of years in, the rental company’s EV strategy is facing some serious challenges: pricing troubles, skyrocketing repair costs and low resale values. Meanwhile big rental rivals are holding back on EVs. Hertz’s investors are divided over what to do next: either kill, or at least pause the EV initiative, or try to find a way to make it work. Meanwhile, the company is planning to reduce the share of Tesla vehicles in its fleet and buy more from other automakers.

Chapters:
1:38 - Chapter 1 - A bold bet
7:07 - Chapter 2 - What went wrong
11:21 - Chapter 3 - Fork in the road

Producer: Robert Ferris
Editor: Darren Geeter
Animation: Mallory Brangan
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images
Additional sources: Enterprise, Auto Rental News, Avis, Tesla, Deutsche Bank

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Why Hertz’s Bet On Tesla Isn’t Paying Off In The U.S.