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The economics of the rental car industry give companies including Avis Budget Group and Enterprise Holdings multiple reasons to go slow on the adoption of electric vehicles. Just think of how much money they make every time a renter forgets to return a car with a full gas tank. But on Monday, the rental car companies received the biggest reason yet to move quicker to EVs as part of their fleets. The deal between Hertz and Tesla for 100,000 vehicles is a signal to the major car rental companies that a strategy for EVs is going to be needed, and maybe sooner than they had planned on it.

It was not a surprise to auto industry analyst John Healy of Northcoast Research that Hertz is the first among the small group of major rental car companies to place a big bet on EVs. After an era of industry consolidation, the three companies represent as much as 95% of the car rental agencies at an airport terminal: Enterprise owns Alamo and National; Hertz owns Dollar and Thrifty; Avis combined with Budget. But it’s only Hertz that has offered EVs in any significant way to date, and its focus was limited to the niche market of luxury renters using its premium services such as Ultimate Choice.

“There hasn’t been a lot going on in electric,” said Healy.

That “ultimate” vehicle category offered consumers access to high-end electric cars from Porsche and Tesla, among others, but the numbers were at the level of a “few hundred” in the fleet versus the 100,000 Teslas in the Hertz deal. “They were trying to make money renting cars, not meet this niche,” Healy said of the main competitors. Hertz saw the affluent renter combined with an EV “intrigue” factor as enough of a reason to experiment on the margins of the business, “but nothing more than that,” Healy said.

Enterprise and Avis Budget did not immediately respond to requests for comment.

If demand hasn’t been there yet to justify a major spend on an EV fleet, the Hertz deal may be the signal that the time has come. But there are big economic hurdles for the rental car industry to overcome that are related to hesitation about EVs to date.

As Hertz prepares to re-IPO after restructuring under private equity investors and with former Ford CEO Mark Fields in as interim-CEO, the Tesla headline gives it another way to differentiate itself in a consolidated rental car space. But ultimately EV fleets are an issue the major rental car companies are all going to need to work through as part of sustainability commitments and new economic thinking.

Dan Ives, analyst at Wedbush Securities who covers Tesla, said the rental car fleets were always viewed as “untouchable” because of the scale of their bulk purchases. “The fact that Hertz dove into the deep end of pool and is spending over $4 billion, that was never even on the radar for the likes of a Tesla,” he said. But now it represents a tipping point not only in EV interest from the market but the supply that Tesla can produce with its factory operations expanding around the world and, within the U.S., to Austin.

The rental car industry represents 1.5 million to 2 million cars per year, a significant part of new sales. 

“For Tesla that is 2 million cars that were never on the radar,” Ives said.

Tesla reached a $1 trillion market capitalization on Monday after the deal was announced.

“This announcement is a clear signal from Tesla that they can deliver a large volume of vehicles,” Jonathan Smoke, chief economist at Cox Automotive, wrote in an emailed statement to CNBC.

Size of EVs for rental has been an issue beyond the luxury market with the sedans too small for most renters’ preferences, but that is changing with the production of more crossover EVs and other hybrid vehicles. The crossover utility segment accounted for 50% of EV sales in the second quarter.

While the carbon footprint of the car rental industry has not been a primary focus of the U.S. government, the pressure is expected to increase in the future and there has been talk among those who follow the industry, Healy said, that President Biden wants the rental car companies to commit to electric vehicle fleets.

“The government push is yet to be determined but it’s probably not going away,” Healy said.

The car rental agencies have sustainability in their business models, such as Enterprise’s carbon offsets program and a longstanding research affiliation it has in the biofuels area. Enterprise has reported on Scope 1 and Scope 2 carbon emissions for years, but not the scope 3 emissions that occur at the tailpipes of its fleet cars. Avis Budget also offers carbon offsets, carbon footprint estimates for corporate clients and cites its acquisition of car-sharing company Zipcar as part of its sustainability initiatives. Avis Budget reports 21,000-plus hybrid vehicles in its fleet globally.

Shareholders advocates focused on ESG have pressed the issue with Avis and Hertz. Shareholders asked Avis to purchase 40,000 EVs. A Hertz shareholder climate resolution in 2020 included EVs as part of a broader discussion on climate change. “Hertz’ standard rental car business currently has only three hybrid electric vehicle options at select locations for consumer rentals, with no all-electric vehicles. While Hertz has taken steps to improve energy efficiency for its operational facilities, the impact of the company’s fleet remains insufficiently addressed,” shareholder advocacy group As You Sow wrote in the 2020 measure.

Driss Lembachar, manager of transportation and infrastructure at Morningstar’s Sustainalytics ESG risk evaluation business, said car rental companies are less exposed to car emissions than automakers, given that the ultimate responsibility for emissions and meeting fuel economy standards from a regulatory point of view mainly rests with car manufacturers. But the fuel efficiency and age of a car rental company’s fleet and its renewal (or lack thereof) is material to investors since these areas impact its attractiveness and customer satisfaction/retention levels.

Sales in the U.S. of zero emissions cars continue to rise, with more than 168,000 zero emission vehicles (battery, plug-in hybrid, and fuel cell electric vehicles) sold in the second quarter of 2021, a 33% increase and 122,000 units more than the same period in 2020, according to industry trade group Alliance for Automotive Innovation. It noted Q2 2021 sales represented 3.8% of the auto market, their highest percentage ever. The auto industry is investing $330 billion in electrification by 2025 and it forecasts more than 130 zero-emission vehicles and 30 hybrid-electric models will be available in the next five years.

The upfront expense for the rental car companies from EV adoption, not only in the purchase price of cars, but in the build out of the charging station infrastructure they would need, have been major reasons for moving slowly, and the current economics of the rental car business makes staying with gas-powered cars attractive. Rental companies make money every time a car is returned without a full tank of gas, and while that represents only about 5% of total revenue, according to Healy, it is high margin revenue. While business models can presumably be developed to charge for “topping off” an EV, there is no established practice for that today.

That is one of the unknowns the rental car agencies are going to experience in a steep learning curve for fleet management with EVs. The timing of EV charging has to be taken into account as part of moving cars in and out of agency lots, and there are basic questions they still can’t answer: how many charging stations will they need, and how many will have to be fast-charging. It takes two minutes if not less to put gas in the car, but it could take hours to charge a car and that time differential could be significant in meeting customer demand.

Analysis of older EVs in recent years as Tesla customer service received scrutiny showed that they can present a unique maintenance and servicing profile. Hans-Werner Kaas, Senior Partner at McKinsey and Company, told CNBC in 2019 that fixes for EVs may be less frequent overall, but more expensive, and equipment including ride control and tires may require more frequent service or replacement due to the higher curb weight and acceleration of electric vehicles.

There are potential economic advantages that EVs may offer rental car companies. They could potentially save money on maintenance and the residual value of the cars hold up better. But all of the unknowns associated with unit economics on EVs have taken precedence over any potential economic benefits.

“Their view was that there is not enough infrastructure and no salivating custom that wants it, so why change anything?” Healy said. “There view has been ‘we will wait and see, but now is not the time.”

For Hertz, in process of coming back to the public market with an IPO, the timing is good for a big announcement related to its positioning versus competitors.

The major car rental agencies have tended to follow each others’ moves in recent history whether it is marketing approach or how they charge customers for various services, and with the space consolidated among the major three players, there will be pressure on Avis Budget and Enterprise Holdings to make moves in the EV space. That could be with Tesla, though they might be getting in line for deliveries behind Hertz, or the major automakers, including GM and Ford, planning to produce a large number of EVs in the years ahead. Rental car agencies have historically focused fleet purchases on the U.S. automakers before adding units from overseas.

“I would think Avis and Enterprise need to respond with something,” Healy said. “This has been a been copycat business for the last 50 years and that won’t change.” 

Ives cited a saying about the car industry, that with bulk orders there is never just one. “I would be shocked if the other competitors of Hertz haven’t put in calls to Tesla,” Ives said.

With a changing consumer landscape and more interest in EVs, the rental car agencies will risk losing business if they move too slowly. Healy expects more consumers in the future will be willing to pay extra to try an EV. “If I can rent a Tesla for an extra $40 a day at Hertz … and Avis doesn’t have it, I might try. … There is a customer who will respond to this and on the margins, Hertz is in a better spot.”

For Tesla, the deal is a good way to introduce consumers who have never driven an electric vehicle before to the technology, especially as the sales prices of EVs relative to traditional cars come down to a level where there is more room for mass adoption.  

“Every consumer that gets into a rental car car could be a conversion to a buyer … it’s an extended test drive,” Ives said.

If the rental car industry remains hesitant, it isn’t because the companies lack the money to spend on EVs. “The industry has never been more profitable,” Healy said. Amid the chip shortages that have limited car production, fleet size is only up 15% against demand that is now back up to 80-85% of the pre-pandemic level, according to Healy. The value of the cars on their balance sheets also have been appreciating in contrast to the typical depreciation they would expect in used cars.

The coming quarterly results should show record profitability and in the current market of high demand and limited car supply, the rental car companies are able to charge as much as double what would have been normal pricing in the past. “If you need the minivan in Florida you are going to pay $100 rather than $75 a day,” Healy said.

There also isn’t much else out there for these companies to buy even as their balance sheets are strong with the industry controlled by the three main players, making more consolidation less likely.

Healy said more changes are occurring across the auto landscape and beginning to get the focus from the businesses ancillary to the carmakers. He covers the auction space and noted that Manheim, the largest auction house, recently said in an investor presentation that it will retrofit 53 auction locations with 127 EV stations for charging and the diagnostic work on battery condition it needs to perform to properly assess the value of an EV up for auction. “We starting to see some change among adjacent companies in the industry,” Healy said.

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China’s first large-scale sodium-ion battery charges to 90% in 12 minutes

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May 17, 2024

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China's first large-scale sodium-ion battery charges to 90% in 12 minutes

China sodium-ion
Photo: China Southern Power Grid Energy Storage

China’s first major sodium-ion battery energy storage station is now online, according to state-owned utility China Southern Power Grid Energy Storage.

The Fulin Sodium-ion Battery Energy Storage Station entered operation on May 11 in Nanning, the capital of the Guangxi Zhuang autonomous region in southern China. Its initial storage capacity is said to be 10 megawatt hours (MWh). Once fully developed, the Station is expected to reach a total capacity of 100 MWh.

The state utility says the 10 MWh sodium-ion battery energy storage station uses 210 Ah sodium-ion battery cells that charge to 90% in a mindblowing 12 minutes. The system comprises 22,000 cells.

Once the project reaches 100 MWh, it could release 73,000 MWh of clean energy each year. That’s enough to power 35,000 households and reduce carbon dioxide emissions by 50,000 tonnes annually.

In an interview with China Central Television, Gao Like, a manager at the Guangxi branch of China Southern Power Grid, said that the energy conversion efficiency of its sodium-ion battery energy storage system exceeds 92%. It’s comparable to the efficiency of common lithium-ion battery storage systems, at 85-95%.

Chen Man, a senior engineer at China Southern Power Grid, said [via the South China Morning Post] that once sodium-ion battery energy storage enters the stage of large-scale development, its cost can be reduced by 20-30%. He continued:

This can be achieved through further improvements in the sodium-ion battery structure, manufacturing process, material utilization, and cycle life, thus lowering the energy storage cost per kilowatt-hour of electricity.

Large-scale sodium-ion batteries are gaining momentum due to their lower cost and abundance of raw materials compared to lithium-ion batteries. The challenges with sodium-ion batteries have been lower energy density and shorter lifespans that can limit efficiency and long-term performance in large-scale applications.

Read more: A new sodium-ion battery breakthrough means they may one day power EVs

To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*

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You can now lease a Rivian R1T for cheaper than the Nissan Titan, starting at $559/month

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May 17, 2024

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You can now lease a Rivian R1T for cheaper than the Nissan Titan, starting at 9/month

Rivian-R1T-lease-cheaper

If you’ve been eyeing a new Rivian R1T, now may be the time to start shopping. Rivian is offering R1T lease rates as low as $559 per month, which is even cheaper than the Nissan Titan.

After introducing leasing for the R1T last November, Rivian is already offering some massive savings opportunities.

Rivian is offering R1T lease configurations for as low as $559 per month. That’s for a new 2024 Rivian R1T Standard Adventure Package and includes $7,500 in lease cash.

The offer is for a 36-month lease with 30,000 total miles with $7,454 due at signing. That amounts to $766 per month. Total vehicle pricing totals $71,700, including Dual Motor AWD, 21″ Wheels, LA Silver Paint, Black Mountain interior, and a $1,800 destination fee.

Although the Nissan Titan’s MSRP is about $24,000 cheaper, the Rivian R1T is still the better lease deal.

Nissan has the 2024 Titan listed at $659 for 36 months. That’s with $5,949 due at signing, according to online research firm CarsDirect. The offer is based on an MSRP of $52,380 for the SV 4×2 Crew Cab model and 10,000 miles a year, which amounts to $824 a month.

Rivian-R1T-lease-cheaper
Rivian R1T (left) and R1S (right) (Source: Rivian)

Rivian R1T is not the only EV lease getting cheaper

The difference maker is the incentives. We’ve seen it with other models like the Hyundai IONIQ6/5 and Kona Electric.

Kia is also offering up to $12,000 off 2024 EV6 and EV9 models with massive stackable incentives.

GM cut prices on its Blazer EV, while deliveries of the new Equinox EV are now underway. The Equinox EV (2LT) currently starts at $43,295, but the $34,995 (1LT) version will be available later this year. With the $7,500 credit, the Equinox EV can be bought for as little as $35,795.

Rival Ford also slashed prices on the Mach-E by 17% earlier this year, driving triple-digit volume growth. Meanwhile, Ford has introduced several incentives for the F-150 Lightning as it looks to keep its title of top-selling EV pickup in the US.

With up to 410 miles range, an 83.9″ long extendable tailgate, up to 11,000 lbs towing, and a 0 to 60 mph sprint in 3 seconds, the R1T is built to upgrade your next adventure.

Rivian-R1T-lease-cheaper
Rivian R1T (left) and R1S (right) (Source: Rivian)

Rivian added R1S leasing options in January. The Rivian R1S can be leased for as little as $639 per month. That’s also for 36 months (30,000 miles total), with $8,534 due at signing.

Rivian’s R1S electric SUV was the seventh best-selling EV in the US last year, topping the Ford F-150 Lightning and Tesla Model X, as demand for large electric SUVs continues to grow.

If you’re ready to see what Rivian has to offer at some of the lowest prices so far, we can help you get started. You can use our links below to view deals on the Rivian R1S and R1T in your area.

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Save up to $400 on Jackery’s new Explorer 1000 v2 power station starting from $679, Greenworks tools 50% off, and more deals

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May 17, 2024

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Save up to 0 on Jackery's new Explorer 1000 v2 power station starting from 9, Greenworks tools 50% off, and more deals

Today’s Green Deals are ones of maximum savings on old and new devices alike, headlined by the launch of the pre-order discount on Jackery’s new Explorer 1000 v2 Portable Power Station for $679. It is joined by an early Memorial Day sale that is taking up to 50% off Greenworks tools, including chainsaws, mowers, blowers, trimmers, pressure washers, and more – starting from $97. There’s also a double one-day sale on the NIU KQi3 Pro Electric Kick Scooter for $600 and the GoTrax FLEX VOYAGER Electric Scooter at $370. Plus, all the other hangover Green Deals that are still alive and well.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Jackery’s new Explorer 1000 v2 Portable Power Station now available for pre-order at $679

Jackery has launched an early bird pre-order deal on its new Explorer 1000 v2 Portable Power Station for $679 shipped, after using the on-page code E1000V2 at checkout for $120 off. This is the very first opportunity to save on this newly upgraded power station before it begins shipping out next month, giving you until May 31 to lock down your very own ahead of summer. Its predecessor, the standard Explorer 1000, has regularly been discounted between $640 and $650 during most major sales we’ve seen since the new year began, meaning for the same general price you’ll be able to get this updated model instead of settling for its older version.

The new Explorer 1000 v2 arrives upgraded from its standard NMC lithium battery to a LiFePO4 battery for greater efficiency and better operations at lower levels of charge. It’s been given a slight bump up from a 1,002Wh capacity to a 1,070Wh of capacity, with its power output being raised as well from 1,000W to 1,500W. Charging times are also more significantly improved, with what used to take 7.5 hours through a 180W max solar input now only taking 3 hours with a 600W solar input or 1.6 hours via a wall outlet (as well as 12-hour charging through a car port). It features the next generation of Chargeshield 2.0 that provides a whopping 62 forms of all-round protection, so don’t worry about accidental surges from storms, sudden outages, etc. It also has seven output ports for your charging needs: three ACs, two USB-Cs, one USB-A, and one car port.

And if you were just thinking to yourself, “I wish there was a way to grab this model with a solar panel,” you’re in luck – cause Jackery also is giving you the first chance to save on the Explorer 1000 v2 Solar Generator bundle for $899 shipped, down from $1,299, after using the on-page code SG1000V2 at checkout for $400 off. The regular Explorer 1000’s bundle gives you two 100W solar panels (whereas the new Explorer 1000 v2 bundle simplifies it into one 200W panel) and is currently marked down to $1,099, meaning this pre-order deal gives you far more for even less – but keep in mind it also only lasts until May 31, so don’t dawdle too long on making a decision.

As part of its early Memorial Day sales, Amazon is taking up to 50% off a large collection of Greenworks mowers, blowers, trimmers, pressure washers, chainsaws, pole saws, bundles, and more. A standout amongst the bunch is the 24V 6-inch Cordless Electric Mini Chainsaw for $99.97 shipped. Regularly fetching $160, this tool has only seen three discounts since the start of the new year, with the first two keeping at $136, while last month we saw it fall to the $100 low. Today’s deal is a slightly bigger 38% markdown off the going rate that lands it at a new all-time low with only a few cents of difference. We’ve also curated a list of our other top picks in this sale below.

This 6-inch mini chainsaw is an ideal addition for travelers and homeowners alike, equipped with a brushless motor and 2.0Ah battery that is able to make up to 100 cuts on a single charge and fully recharges in up to an hour. Plus, as is common with the brand, the battery can be interchanged with over 125 other devices and tools within the Greenworks ecosystem for more convenient power needs. Its compact design allows it to better fit in tight spaces than any standard chainsaw and it lessens arm fatigue at just 3 pounds. And with its multiple, built-in safety features, like the anti-splash baffle or the safety lock, you’re ensured a much more controlled experience whether it’s for garden or tree pruning, home DIY projects, cutting up firewood, or more.

Other notable Greenworks Memorial Day discounts:

Notable Greenworks Memorial Day bundle discounts:

NIU KQi3 Pro Foldable Electric Kick Scooter hits $600 for today only

As part of its Deals of the Day, Best Buy is offering the NIU KQi3 Pro Foldable Electric Kick Scooter for $599.99 shipped. Usually fetching $799, this model has seen very few discounts since the new year began, with its successor, the KQi3 Max often receiving discounts over it. We’ve seen it go for as low as $599 in the past, meaning today’s deal gives you the second-lowest price we have tracked at just $1 above the all-time low from Black Friday sales. Regardless, it’s still a great opportunity to snag this commuting option at its lowest prices – but don’t forget, the deal only lasts until the end of the day.

The NIU KQi3 Pro offers an affordable, longer-than-normal-commuting solution of 31 miles on a single charge at 20 MPH top speeds, matching or coming near many popular e-bike models that go for more. It sports a 350W rear drive motor and a 48V battery that can handle 20% inclines together, as well as wider 21-inch handlebars and 9.5-inch rubber pneumatic tires. Its triple braking system gives you superior stopping power, with braking lights on its backside and a bright Halo headlight for evening or night time cruises, ensuring a safer journey. You’ll also get complete smart controls through the NIU app, letting you monitor or adjust settings, but more importantly it allows for the scooter to be locked for added security. You can also find the upgraded KQi3 Max model on sale as well for $750, down from $1,000.

As a cheaper option for those with a shorter travel distance or perhaps for your teens to start off with, Best Buy is also offering a one-day discount on the GoTrax FLEX VOYAGER Electric Scooter for $370, down from $600. You’re looking at a much more simplified sit-down option here, with a 15.5 MPH top speed for up to 19 miles on a single charge with its 350W motor and 36V battery. Its cushioned seat, working alongside the 14-inch shock-absorbing pneumatic tires and its rear suspension, will ensure a much smoother ride as opposed to other basic standing models. You’ll also get an integrated storage basket for errand running – or perhaps for your kids to ride to school or to a friend’s house.

Spring e-bike deals!

Hover-1 multi-color Instinct Electric Bike parked with kickstand with NYC skyline in background within post for Jackery Explorer 1000 v2 Portable Power Station

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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