Estero-headquartered rental car company Hertz posted a record-breaking third quarter by bringing in $629 million in net income and a quarterly-record $2.7 billion in revenue, according to an earnings report.

However, on the earnings call, CEO Steven Scherr announced the company’s in-fleeting of electric vehicles will be slower than prior expectations with as EV repair costs coming in higher than expected and price cuts to Tesla vehicles reducing the resale value of its EV fleet by about one-third.

In 2021, Hertz announced its commitment to offering the largest EV rental fleet in North America, pledging to buy 100,000 vehicles from Tesla and 175,000 EVs from General Motors Co. About 80% of the company’s current EV fleet are Teslas and 11% of its entire fleet are EVs with about 50,000.