Hertz Global Holdings Inc’s latest regulatory filing on Tuesday revealed that their rental fleet has fallen short of their planned order for Tesla vehicles.
According to the filing, the company’s American fleet peaked at 428,700 vehicles, with only 11% of them being Tesla cars. The company’s international fleet includes an additional 1,187 Teslas, bringing the total number of Tesla EVs in Hertz’s fleet to 48,344.
This is significantly less than the 100,000 electric vehicles the company had intended to order from Tesla by the end of 2022.
See also: Hertz adds Tesla Model Y to its electric vehicle fleet
In 2021, Hertz’s choice to increase its vehicle fleet with Tesla vehicles led to a brief surge in Tesla’s market value, reaching a historic milestone of $1 trillion. However, the market conditions have changed since then. With the decline in demand for automobiles, supply chain interruptions, and Elon Musk’s tweeting antics, Tesla’s market capitalization has fallen to $616.24 billion as of the last close.
Hertz has not provided any explanation regarding the reduction in its original order of Tesla vehicles. On Tuesday, the car rental company projected a positive outlook for its revenue and profits in the upcoming second and third quarters. This optimism is based on the assumption that a weak economy will drive an increase in demand for rental cars.
Hertz announced a 12% YoY profit boost in January, following its investment in electric vehicles. Hertz has been optimizing its fleet and cutting costs by transitioning to EVs, as reported by Cooldown.
The Hertz fleet includes electric vehicles from various manufacturers such as Polestar, GM, and Tesla.
