Hertz Begins To Take Delivery Of GM Vehicles; Continues To Buy Tesla, Polestar Cars As EV Makers Cut Prices

Hertz Global Holdings Inc HTZ CEO Stephen Scherr commented on price cuts within the EV segment in the company’s first-quarter earnings call on Thursday.

What Happened: Hertz has been benefiting from the recent price cuts by EV manufacturers, Scherr said on Thursday. The car rental company now sees 2 million EV rentals in 2023, about five times the numbers from the prior year.

Hertz has now commenced taking delivery of General Motors Co‘s GM EVs in addition to Tesla Inc TSLA and Polestar Automotive Holding UK PLC PSNY vehicles in a bid to diversify its fleet in terms of price points.

At the end of the first quarter, EVs accounted for 10% of Hertz’s fleet. Hertz aims to get it to 25% by the end of next year. “I think the drop in price on EVs is an encouraging proposition for us,” the CEO said while adding that there is a “lot more” to buy.

See Also: Best Auto Manufacturer Stocks

Why It Matters: The new deliveries follow the agreement between Hertz and GM last September. Hertz announced then that it would order up to 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop EVs over the next five years.

For the first quarter, Hertz reported revenue growth of 13% year-on-year to $2.05 billion and adjusted EPS of $0.39 beating the consensus of $0.21.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Ford Teams Up With Zeeba Automotive To Electrify Fleet