The decision by Hertz to sell one-third of its electric vehicle fleet due to rapid depreciation has raised concerns about the viability of EVs. The company cited high repair costs and an increased likelihood of collisions as contributing factors. Critics, including Senator John Barrasso, seized on the news to argue against Biden administration policies promoting electric vehicles. Hertz CEO Stephen Scherr partly blamed Tesla s price cuts for the depreciation, while also acknowledging the need for further market development. Despite this setback, industry experts emphasize that there is still a growing market for electric vehicles in the United States.
US EV Policy: According to S&P Global Commodity Insights, despite encouraging the inclusion of U.S.-sourced battery metals such as lithium, cobalt, and nickel in tax credit-eligible EVs, low domestic production levels are expected to keep the U.S. reliant on foreign producers.