Car-rental company Sixt
SIX2,
is phasing out Tesla Inc.’s EVs from its fleet due to lower resale value, Bloomberg reported Monday, citing an email to customers from the German company that it had viewed. Tesla’s price cuts hit residual values and higher EV repair costs are compounding the problem, the report said. Sixt did not immediately respond to a request for comment. According to Bloomberg, the company still plans to electrify as much as 90% of its fleet in Europe by the end of the decade. In October, U.S. car rental company Hertz Global Holdings Inc.
HTZ,
cited similar concerns about its rental Teslas and fleet value. Tesla shares traded 1.4% lower on Monday, and are down about 4% in the past three months. The shares are holding on to sizable yearly gains, however, up 91% and outperforming the S&P 500 index
SPX,
which is up around 19% in the same period.
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