Sixt to Phase Out Teslas From Rental Car Fleet on Poor Resale Value

Sixt SE is phasing out Tesla Inc. electric cars from its fleet after the manufacturer’s heavy price cuts hurt residual values at Europe’s biggest car-rental company.

Higher repair costs for electric cars compared to combustion vehicles are compounding the issues with lower resale values, Sixt said in an email to customers seen by Bloomberg News. The company still plans to electrify as much as 90% of its fleet in Europe by the end of the decade, according to a spokesperson.