What Happened: While Polestar has agreed to waive Hertz’s requirement to buy a particular number of EVs from it in 2024, Hertz has agreed to not sell the Polestar vehicles in its fleet too early or cheap, Financial Times reported, citing Polestar CEO Thomas Ingenlath.

As per the report, Hertz will keep the existing Polestar cars in its fleet for longer than a year and Polestar will have the right to first refusal when the rental firm indeed decides to let go of the vehicles from its fleet.

The CEO further told FT that the company intends to resume sales to Hertz in the future. However, whether it will start in 2025 is subject to review, he added.

Hertz announced a partnership with Polestar in 2022 under which the rental firm said it will purchase up to 65,000 electric vehicles from the Swedish EV maker over 5 years.

In January, Hertz announced that it will sell about 20,000 EVs in its fleet over the year. The company has already started selling the Tesla vehicles in its fleet.

Price Action: Polestar Automotive Holding UK PLC (NASDAQ:PSNY) shares dropped 7.3% to close at $1.66 on Monday while Hertz shares dipped 5.6% and closed at $8.21, according to data from Benzinga Pro.

Photo by Jeppe Gustafsson on Shutterstock

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