Sixt, an international car rental company with locations in more than 100 countries, said it will be phasing out Tesla Inc (NASDAQ:TSLA) electric vehicles from its fleet due to their poor resale value.
In an email to customers viewed by Bloomberg, the company said higher repair costs for electric vehicles compared to combustion engines added to issues with lower resale values spurred by Tesla’s recent aggressive price cuts.
A spokesperson confirmed to the publication that the car rental agency still intends to electrify up to 90% of its fleet in Europe by 2030.
Reportedly about 6% of Sixt’s current fleet is EVs but it is unknown how many of these are Teslas.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie