Bloomberg Hyperdrive is out today with the story of how some Wall Street executives mismanaged the Hertz campaign to integrate electric cars into its fleet, setting back the EV revolution in America. The saga showcases the repercussions of arrogant decisions made without proper consideration.
On May 22, 2020, Hertz, America’s top car rental company, filed for bankruptcy during the peak of the Covid-19 pandemic, a time when travel restrictions were at their height.
Hertz Emerges From Bankruptcy
Seeing an opportunity in the crisis, Tom Wagner and Greg O’Hara, inexperienced in the rental car industry but renowned for their financial acumen, acquired Hertz to lead an electric vehicle transformation. Their vision included a vast Tesla fleet and a nationwide charging network, coupled with celebrity endorsements to boost the company’s image.
Despite the initial success of their strategy, the EV initiative soon unraveled due to Tesla price cuts, high maintenance costs, and unexpected operational challenges. The dream of an electric future quickly turned into a nightmare for Hertz.
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The Hertz EV Strategy Goes Up In Smoke
The grand plan of electrifying the Hertz fleet with Teslas quickly turned sour as operational challenges, high maintenance costs, and Tesla price cuts took their toll. The company’s pivot back to conventional gasoline vehicles marked a significant setback for the EV industry in America.
Stay informed with more updates on the Hertz saga.