Two finance veterans who bought the bankrupt car rental company Hertz went all-in on providing a fleet of electric vehicles. They had a plan to swap Hertz's gas-powered rental-cars for electric vehicles, which included an unprecedented order for 100,000 Teslas.

Estero

Hertz, a renowned car rental company, made a significant shift in its fleet composition by deciding to transition from gas-powered vehicles to electric vehicles (EVs). This strategic move was initiated by two finance veterans who acquired Hertz after it declared bankruptcy. Their ambitious plan involved an unparalleled acquisition of 100,000 Tesla electric vehicles, marking a pivotal step towards electrifying the company's fleet.

The transition aimed at not only modernizing Hertz's offerings but also aligning with the growing global emphasis on sustainable transportation. This daring bet on electric vehicles represented a significant departure from traditional car rental models, showcasing Hertz's commitment to innovation and environmental consciousness.



Behind Hertz's doomed bet to electrify its fleet

A pair of finance veterans bought the bankrupt car rental company Hertz in 2021 and went all in on electric. And it turned out to be a bad bet. Bloomberg's Eric Schatzker co-wrote the article and joins us now. Eric just how long have you been working on this article. Alex I came to it three years ago when they when the two guys who bought Hertz out of bankruptcy concocted this electrification plan. And I have to be honest with you at the time to them as well as to me it seemed like a great idea. Take a effectively a century old business and bring it into the 21st century by taking the gas powered cars the gas guzzlers and replace them with Tesla's. So when you started writing the article three years ago was the article like this is a great move. And then slowly it turned into like oh this did not go well. Well what it was at the time was this is what they're doing. And the reason we put it on the shelf is that we didn't know where it was going. As it turned out it went. It just didn't go. It just didn't go where they wanted it to. Boy they just early. Or were there fundamental issues in turning a rental car company into an E.V. fleet. That is in essence the issue. Some of it for sure is early E.V. demand from a rental standpoint just isn't there yet. And as we're finding out right now E.V. demand from a purchasing standpoint isn't quite there yet either. The early adopters have their Tesla's and other E.V.'s. Everybody else just isn't ready yet. So that was problem number one. Problem number two when you take newbie E.V. drivers and put them behind the wheel of a Tesla they get into a lot of accidents it turns out. And those accidents were extremely expensive. The cost hurts a lot of money and the cars were out of service for a long time. And finally as we know now Elon Musk over the course of 2023 cut Tesla prices multiple times in a battle for market share. And that blew a hole wide open into Hertz's balance sheet cost the company hundreds of millions of dollars in depreciation costs made a bad situation that much worse. And now they're unwinding the plan. They're selling off some 20000 Tesla's doubling down on gas powered cars and putting Hertz kind of where it was before. Some of the stuff that that was part of the strategy is working. But the company going forward will look a lot more like the company that came into this. That's crazy. Who's in charge now. A guy named Gil West is the former chief operating officer at Delta Airlines. He definitely knows operations and is used to the ups and downs of the transportation industry. He's probably probably a good guy for a turnaround job like Hertz. Stephen Schur the former chief financial officer from Goldman Sachs who has been the CEO for the past two years has stepped down. And to be fair he doesn't think he's the right guy for this job. He probably isn't.

U.S. Secretary of State Antony Blinken met Israeli Prime Minister Benjamin Netanyahu on Wednesday, pushing to get more aid into Gaza, while urging Hamas to accept a deal that would halt fighting and bring some hostages home from the enclave.

Jerusalem

Israel-Gaza War

Blinken pushes for sustained aid into Gaza during Israel trip

Police in Georgia fired teargas and rubber bullets at protesters demonstrating against a bill that would require organizations – including media and NGOs – that receive more than 20 percent of their funding from abroad to register as agents "pursuing the interests of a foreign power." The bill has been dubbed the "Russian law" by its detractors.

Tbilisi

Thousands protest against Georgia's 'foreign influence' bill

U.S. Secretary of State Antony Blinken was in Israel to press for a ceasefire deal, saying “the time is now" and warning that Hamas would bear the blame for any failure to get an agreement to halt the war in Gaza off the ground.

Tel Aviv-Yafo

Blinken in Israel to push for ceasefire in Gaza

A diplomatic push is underway to reach a ceasefire in Gaza, with the U.S. exerting pressure on Hamas to agree to Israel's terms. But Israeli Prime Minister Benjamin Netanyahu has vowed to attack Rafah in southern Gaza, whether there's a ceasefire or not.

Netanyahu vows to invade Rafah 'with or without' ceasefire deal

Qantas has apologised to customers after its app exposed personal passenger data. The airline blames a technical disruption and says the data breach was not a cyber security incident.

Council of the City of Sydney

Qantas app data breach exposes customer data

The International Court of Justice has ruled against issuing emergency measures over German arms sales to Israel as requested by Nicaragua, which had argued that there was a serious risk of genocide in Gaza amid Israel’s assault on the Palestinian territory.

The Hague

ICJ rejects measures over German arms exports to Israel

New York police have entered Columbia University and arrested protesters barricaded inside a building who have been calling on the New York school to divest itself from companies associated with Israel.

New York

Police enter Columbia University, arrest protesters

A smiling and healthy-looking King Charles returned to public duties on Tuesday (April 30) for the first time since he was diagnosed in February with cancer, paying a visit to a treatment center for the disease in London.

London

King Charles returns to public duties, visits cancer center

A 14-year-old boy is dead and multiple people injured after a daylight sword attack in Hainault, in east London. The alleged attacker tasered and arrested by Police shortly afterwards.

Hainault

Teenage boy killed in London sword attack

Brittany Higgins has failed in a bid to delay a defamation trial brought against her by Senator Linda Reynolds over social media posts made in July last year. Fiancé David Sharaz, also named in the case, calling for the Senator to drop the case.

Canberra

Brittany Higgins fails in bid to delay defamation trial

Since taking office four months ago, Argentina's new president Javier Milei has slashed public employment in an effort to cut the country's deficit. So far, 24,000 people have been let go, and Milei has said he wants that figure to hit 70,000, about 10 percent of overall government employees.

Buenos Aires

Argentina's Milei slashes 24,000 government jobs

A Russian missile attack on an educational institution in a popular seafront park in the Ukrainian Black Sea port of Odesa killed at least five people and injured 32, local officials said. Odesa has been a frequent target of Russian missile and drone attacks, particular port infrastructure.

Odesa

Ukraine Invasion

Russian missile attack kills five in Ukraine's Odesa

Scotland's leader Humza Yousaf resigned, further opening the door to the UK opposition Labour Party regaining ground in its former Scottish heartlands during a national election expected to be held later this year.

Edinburgh

Scotland's First Minister Humza Yousaf quits

A 17-year-old girl charged with the stabbing murder of her 10-year-old sister in a suburb of Lake Macquarie in New South Wales will remain in custody.

Lake Macquarie

Teenager faces court over murder of 10-year-old sister

Columbia University began suspending pro-Palestinian activists who refused to dismantle a tent encampment on its New York City campus after the Ivy League school declared a stalemate in talks seeking to end the polarizing protest.

Columbia University suspends pro-Palestinian protesters

The debris from a missile that landed in the Ukrainian city of Kharkiv on Jan. 2 was from a North Korean Hwasong-11 series ballistic missile, United Nations sanctions monitors told a Security Council committee in a report seen by Reuters on Monday (April 29).

Kharkiv

U.N. experts say North Korea missile landed in Kharkiv

Columbia University's president said that talks with pro-Palestinian activists over a protest encampment on the Ivy League campus in New York City had reached an impasse and urged demonstrators to voluntarily disperse or face suspension.

Protesters defy deadline to leave Columbia encampment

Spain's Prime Minister said he has decided to stay in office after days of publicly weighing his future, generating relief amongst leftist allies, exasperation among the public and ridicule from his opponents. Sanchez said last week that he was retreating from public duty to decide whether to quit.

Madrid

Pedro Sanchez stays on as Spain's prime minister

U.S. Secretary of State Antony Blinken says he is hopeful Hamas will accept an “extraordinarily generous” offer, as U.K. Foreign Minister David Cameron says it will include a 40-day ceasefire. But the sticking points remain: Israelis want a truce while Hamas demands a cessation of all hostilities.

Riyadh

U.S., U.K. urge Hamas to accept Israeli truce proposal

G7 environment ministers have gathered in Turin for two days of talks, as hundreds of protesters demonstrated in the city, some burning photos of the G7 leaders who they accuse of failing future generations over the climate crisis.

Turin

Climate Crisis

Protesters call for climate action ahead of G7 meeting in Turin

French Foreign Minister Stephane Sejourne is in the Lebanese capital Beirut for talks aimed at easing tensions between Hezbollah and Israel. After meeting Lebanon’s influential Speaker of Parliament Nabih Berri, an ally of Hezbollah, and the head of the Lebanese army, Joseph Aoun, Sejourne said there had been “a lot of progress” over the French proposals.

Beirut

French FM says ‘a lot of progress’ in Lebanon talks

At least four people are dead, including an infant, after a series of tornadoes swept across Oklahoma. The weather system is threatening the region with more twisters, heavy rain and large hail in a band stretching from Missouri to Texas.

Sulphur

At least four dead in Oklahoma tornadoes

Italian Prime Minister Giorgia Meloni said she would stand in upcoming European Parliament elections, a move apparently calculated to boost her far-right party, although she would be forced to resign immediately under EU rules.

Pescara

Italian far-right PM Meloni says will stand in EU elections

At least four people died, including a four-month-old baby, in Oklahoma this weekend, after dozens of twisters swept the U.S. Southern Plains. The White House said, President Joe Biden has pledged federal support for Oklahoma as well as other states hit by severe storms.

Oklahoma

Deadly tornadoes rip through Oklahoma

The Sydney Bishop targeted in an alleged terror-related attack a fortnight ago has made a surprise appearance before his congregation in Western Sydney. Bishop Mar Mari Emmanuel saying he forgives his attacker, who is facing terrorism charges.

Wakeley

Sydney bishop returns to pulpit after stabbing

Prime Minister Anthony Albanese has been slammed by protest leaders for his involvement in a protest against gendered violence in Canberra at the weekend. Organisers hitting out at the Labor leader on social media, calling him a 'liar'.

Protest leaders hit out at Prime Minister over power 'abuse'

U.S. President Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu and "reiterated his clear position" on a possible invasion of the Gaza border city of Rafah, the White House said.

Biden tells Netanyahu U.S. doesn't support Rafah assault

Ukraine's top general says his troops have been forced to retreat as fighting on the country's eastern front intensified. Kyiv's forces have fallen back to new positions in at least three places along the front, west of the Donetsk region.

Donetsk

Ukraine troops retreating on eastern front

Tesla CEO Elon Musk arrived in Beijing on an unannounced visit, to meet senior officials to discuss the rollout of Full Self-Driving software and permission to transfer data overseas, according to a person with knowledge of the matter.

Shanghai

Elon Musk makes surprise visit to China

Hamas's armed wing released video of two men held hostage in Gaza who are seen alive and urging Israeli authorities to strike a deal for the release of all the remaining captives.