[fireboy92k]

This is also a bit topic adjacent to VW, but thought it was important to share as this could end up being the first taste a lot of people have with EV's if they do this.

100k Model 3s by the end of next year.

Tesla Scores Massive Order: 100,000 EVs For Hertz's Rental Fleet (insideevs.com)

 

[Froggy]

A sedan that is exclusively controlled by a single off center screen. Sedans are the slowest selling vehicles in the US. Plus do you really want to figure out a touch screen system for a limited time rental? Of course Teslaratis will love 💕 it.

 

[Fahrer]

The worst thing a company can do for their brands is to start selling to fleets, particularly car rental companies. Also, as mentioned above, who wants to spend 20 minutes figuring out a strange setup in your rental car when you need to get going to your meeting/destination?

 

[agzand]

The worst thing a company can do for their brands is to start selling to fleets, particularly car rental companies. Also, as mentioned above, who wants to spend 20 minutes figuring out a strange setup in your rental car when you need to get going to your meeting/destination?

I also think this is a bad move for Tesla, too many cars in rental fleet is bad for a luxury brand. It is OK for VW or Toyota because those are considered mainstream, but Tesla sells nonluxury cars at luxury prices. So if the perceived brand exclusivity is damaged it could have negative impact on their pricing power.

 

[fireboy92k]

I'm going to suspect that these will be a) more expensive rentals and b) appeal to those that already drive an electric or for those that want to test one out on some extended trip/try out before buying. If you are unsure, never a bad deal to rent one for a week and try it out.

Hertz has long had a luxury rental program, including an exclusive for some time on a specific model of the Mustang.

The number might be too big, but I'm not so sure it's a stretch to say only crap cars go-to rental car companies. That's true of budget rentals for sure.

 

[Nai3t]

Agreed, it would be natural for a Tesla owner to want to rent a Tesla while traveling. But there are probably, what, about a million Teslas on American roads? So I'm sure Hertz is expecting to cater to a broader demographic.

It would seem logical Hertz would supplement that with some ID.4s, Leafs, and Niros, but honestly, how the heck is any auto manufacturer — Tesla included — entertaining fleet sales in this manufacturing nightmare?

 

[Eric Nay]

I see it as no big deal. I personally don't like Tesla styling choices, but so what?

The stock market has pummelled all car companies except Tesla, while driving their stock up to $1000/share. If Hertz buys a bunch of Teslas, I'm sure the CFO is expecting their shares to swell and he/she gets their Christmas bonus!

 

[Spin]

Any company would be foolish to turn down an order of 100,000 vehicles. By next year Tesla will have 3, maybe 4 factories spitting out M3s. That is a 4 or 5 billion dollar order!!

 

[Eric Nay]

I wonder if Hertz will get access to the Tesla DB, so they can see how many miles you actually drove and where you went.

 

[d287]

Hey, I’m here because I picked VW over Tesla, but I’ll take any EV over a gas car if I’m renting. (Assuming we ever travel for business again, that is…)

 

[fireboy92k]

Hey, I’m here because I picked VW over Tesla, but I’ll take any EV over a gas car if I’m renting. (Assuming we ever travel for business again, that is…)

Yeah, I know this was a little 'off topic', but it's pretty big EV news. So thought it might be interesting to everyone. To @Spin 's point, it's a $4B (with a B) order. At least at list price anyhow.

What would VW give to have taken even a quarter of that?

 

[agzand]

Yeah, I know this was a little 'off topic', but it's pretty big EV news. So thought it might be interesting to everyone. To @Spin 's point, it's a $4B (with a B) order. At least at list price anyhow.

What would VW give to have taken even a quarter of that?

I don't think VW has production capacity to fill such an order yet. On the other hand they probably sell more ICE cars to fleet every year at higher profits and no one talks about it.

On the other hand rental fleet is usually short lived (2-3 years max), so in a couple of years you will have a large fleet of used Model 3s hitting the market.

 

[plh]

Best get Plug and Charge working first! Could you imagine a EV newbie with a rental trying to figure things out?

 

[Mike Bouck]

Something smells in Denmark.

1. Hertz just came out of bankruptcy and is still billions in debt.
2. Tesla says Hertz will buy at full market price - nobody does this in rental car world. Why would they?
3. Successful in-demand models aren't bulk sold to rental car companies.
4. Rental car sales destroys the residual for the car. You're welcome Model 3 owners.
5. If robotaxis are just around the corner wouldn't it make more sense to stockpile a bunch of them and have all recurring revenue from your "appreciating assets" go into your pocket instead of a competitor's?

My two cents - seems seems like a pump and dump both for Tesla as well as Hertz.

 

[rth121]

According to Lucid from InsideEVs article... We're still 10 years away from robotaxis.

Despite Tesla's Goals, Lucid CEO Says RoboTaxis Are 10 Years Off

It's no surprise Lucid's Peter Rawlinson believes it will be years before we have robotaxis. Tesla's FSD Beta is improving, but it's nowhere near full autonomy.

insideevs.com

 

[fireboy92k]

Tesla is pretty notorious for NOT letting you buy out your lease. My guess is it's a lease deal and Hertz has a floor commitment much lower than the 100k (which is the top end and which they are unlikely to hit, but they don't have to say that in a press release). When they are done, they give them back to Tesla who does a mild reconditioning and sells them as CPO cars for say $10k less than list. Tesla wins both ways and Hertz gets some good PR and a positive image boost. Hell, they hired Tom Brady for the ad spots.

Oh, and Hertz gets the option to stop and/or dump and run if Tesla goes sideways or whatever.

 

[d287]

According to Lucid from InsideEVs article... We're still 10 years away from robotaxis.

Despite Tesla's Goals, Lucid CEO Says RoboTaxis Are 10 Years Off

It's no surprise Lucid's Peter Rawlinson believes it will be years before we have robotaxis. Tesla's FSD Beta is improving, but it's nowhere near full autonomy.

insideevs.com

I figure it’s like cold fusion - always a decade away.

 

[p7wang]

I don't think VW has production capacity to fill such an order yet. On the other hand they probably sell more ICE cars to fleet every year at higher profits and no one talks about it.

On the other hand rental fleet is usually short lived (2-3 years max), so in a couple of years you will have a large fleet of used Model 3s hitting the market.

Maybe, maybe not. ICE are ditched early to avoid the 30/60K mile maintenance, which could be costly. If Hertz is leasing, then I can see Tesla wants it back at the end of year 3. Otherwise, Tesla should not have any major maintenance for... 100K+? Besides, with the constant updates, can an old rental Tesla feel 'old'?

Although, it would be interesting to have 100K used Tesla flood the market in 3-4 years.

 

[fireboy92k]

Yeah, it's nice in the short term for used Tesla's to sell for more than people owe or for new ones, but long term that's not sustainable for the market.

 

[Fahrer]

Interesting. Other car companies are having a difficult time keeping up with demand. Producers of lower market car brands such as Dodge, Chevrolet, Ford traditionally supply significant quantities ( at lower margins) to the rental car companies to help cover their high fixed costs when retail sales are bit slow.

Either Tesla is having a difficult time moving their cars or perhaps they are getting a good price from the ( perhaps desperate?) rental companies?

It might be that Tesla sees VW, Ford, Audi, others as a major threat to their business and need get more cars in the hands of drivers?

In a few years Tesla is likely to be the world's number 2 or 3 EV producer.