Consumers' unwillingness to rent EVs has cost at least one high-profile CEO his job.
According to CNN, it is the firm’s most significant quarterly loss since 2020.
A fair portion of the downfall stemmed from Scherr’s failed bet on EVs.
Ultimately, the company only bought 60,000 electric cars before pulling the plug on its EV plans.
The company expects to take a $245 million hit related to the sale due to depreciation.
Wedbush Securities EV Analyst Daniel Ives suggests that consumer skepticism was part of Scherr’s EV venture’s failure.
A significant number of people are biased toward internal combustion engines.
Electric vehicles require specialized charging stalls, which are still not as widely available as traditional gas stations.
Since purchasing electric vehicles is more expensive, the added maintenance costs hit the company like a one-two punch.
