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The Hertz Meltdown Reveals Scale Of The EV Debacle


The Biden administration’s Environmental Protection Agency (EPA) has revealed its ambition: to phase out gas-powered cars in favor of electric vehicles (EVs). Incredibly, this announcement comes as we are flooded with overwhelming evidence that EVs are a market loser.

Indeed, the artificial boom and then meltdown of the EV market is a modern industrial calamity. It was created by government, social media, wild disease frenzy, far-flung thinking, and the irrational chasing of utopia, followed by a rude awakening by facts and reality.

CEO of Hertz Stephen Scherr has been booted out due to a vast purchase of an EV fleet that consumers didn’t even want to rent. The company has now been forced to sell them at a deep discount and in a market where consumers are not particularly interested.

Looking back, however, Scherr’s decision to bet everything on an EV boom was a disaster that was highly praised at the time. Only last year, the company bragged: “This morning, [Hertz] was recognized by The White House for our efforts to expand access to electric vehicles across the country. Demand for EV rentals is growing and we’re here to help our customers electrify their travels.”

Pleasing the Biden administration is not the same as pleasing consumers.

The demand turned south fast in a real-world test of drivers. But that’s not all. Hertz could not make their investment pay no matter what they did.

The key issues with EVs are as follows.

The cost upfront is much higher.

Financing charges are higher.

They depreciate at

Continue reading The Hertz Meltdown Reveals Scale Of The EV Debacle at ZeroHedge.

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