PASS: Who Wants 30,000 Used Teslas?

Hertz’s latest challenge is trying to get out of its entanglement with Tesla. In retrospect, it just looks like a bad idea. Companies like Hertz make money when they rent out cars as often as possible, which means their vehicles will often have more miles than the average vehicle, and, in turn, have more problems that need expensive maintenance. A side deal renting the EVs to Uber drivers — who often have to drive hundreds of miles a day to make a profit — wore down the cars even more, which also weighed down their resale value. Last month, the company announced that it had sold about 10,000 EVs — about a third of the total fleet it intends to offload. At first blush, that looked like Hertz would be ahead of schedule. But the pace of sales is starting to slow. One salesman at a Hertz in Smithtown, New York, told me that sales have dropped from as much as 30 a week in January and February to about five a week in April. Online forums are full of people steering prospective buyers away from Hertz vehicles. One factor may be price. “Hertz does not provide haggling on price,” he said. “It is what it is.”

When Hertz first announced it was selling off most of its EVs, it blamed lower demand among the traveling public than it had expected. “They have an oversupply” of Teslas, said John Plimpton Babcock, an analyst at Bank of America who covers the car-rental company. That lower turnover meant less profit, he added.

It makes sense Hertz would try to sell off its fleet now. Purchases of brand-new EVs are stalling out after a decade or so of stratospheric growth. Auto loans have interest rates starting at about 5 percent and go skyward from there. A shortage of reliable charging stations, and worries about batteries losing power in cold weather, have all hurt public interest in owning — and perhaps even renting — an EV.

If you’re going to rent from Hertz, why not rent something with serious pornographic value? Rent a Shelby Mustang.