Hertz CEO Stephen Scherr informed CNBC’s Jim Cramer Thursday that his company will continue shopping for electric vehicles for its fleet, regardless that the automobiles precipitated some complications over the past quarter.
The company launched its third-quarter report earlier than the market open Thursday, with income in keeping with Wall Street estimates however earnings per share coming in decrease than anticipated. By Thursday’s shut, the company’s inventory was down greater than 10%.
“I feel there is no know-how change, EVs included, that run a straight line with out some hiccups and challenges, and that is this,” Scherr mentioned. “The line from A to B is just not all the time straight, it is not that right here. Depreciation is larger as a result of the MSRP got here down, however we’re a greater purchaser on the ahead.”
Scherr mentioned Hertz noticed its EVs depreciate in worth this yr as Tesla made important price cuts to its fashions. EVs are seeing extra injury than combustion engine automobiles, and the price to restore them is larger due to a much less “strong” provide of components and obtainable labor, he continued.
EVs make up about 11% of Hertz’s fleet, with Teslas accounting for 80% of the group, Scherr mentioned. He added that Hertz will purchase extra Teslas in addition to General Motors EVs, aiming to have 10,000 in its fleet by the tip of the yr.
“I might say that GM has a really broad, very well-oiled half provide community that will profit in how we function these automobiles,” he mentioned. “Tesla, little question, will develop that over time.”