Tesla Sell-Off at Hertz Leads to CEO's Resignation, Massive Losses
Hertz CEO Stephen Scherr is stepping down and replacing former GM Cruise COO Gil West. Scherr joined Hertz after it placed a large order for Teslas and increased its EV bet further with orders from Polestar and GM. However, Hertz struggled with the Teslas due to price cuts reducing resale value and high repair costs. The company sold off around 20,000 EVs, a third of its electrified fleet, taking a $245 million charge. Other rental companies like Sixt have also ditched their EV fleets recently. West was previously one of nine Cruise executives dismissed over withholding a video of a pedestrian accident.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 Hertz CEO Stephen Sher is stepping down and being replaced by former GM Cruise COO Gil West.
00:07 Sher joined Hertz after it placed a large order for Teslas and increased its EV bet further with
00:11 orders from Polestar and GM. However, Hertz struggled with the Teslas due to price cuts
00:15 reducing resale value and high repair costs. The company sold off around 20,000 EVs,
00:20 a third of its electrified fleet, taking a $245 million charge. Other rental companies like Sixt
00:25 have also ditched their EV fleets recently. West was previously one of nine cruise executives
00:30 dismissed over holding a video of a pedestrian accident. For all things money visit Benzinga.com