Hertz to purchase another 100K Teslas?

JeffKeryk

JeffKeryk

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Apparantly to satisfy the Uber deal, Hertz might buy another 100K Teslas. That brings the revenue up to $8.4B.
Ya know, as people rent Teslas, Tesla gets free advertising.
Hertz and other rental companies generally buy cars at a volume discount; the Model 3s are at market price; Hertz is paying the same as you and me.
Hertz Uber Tesla

The next thing is car insurance; Tesla will charge on driving record, not zip code, age, sex, marital status, etc. And if this works, your house insurance is their logical next business venture.
TSLA is up another $95 today; more than $500 over the last 6 months. Folks, that whack Elon is looking pretty darn smart nowadays.

By the way, this post is not about cars; it is a lesson in business disruption.
 
CatCam2 said:
Do you have to bring it back with a full charge or else they charge you 50 dollars a kilowatt
Click to expand...
AFAIK, not much more than the purchase has been revealed, but I'm sure Hertz has figured out how to handle charging.
I'm sure most rentals will not come in charged. Hertz will simply plug 'em in while they wait for the next customer.
If they install decent chargers, 2 hours will do the trick.

If the overall rental price is too high, customers will pice a Corolla instead.
 
I wonder how long it'll take Hertz to make their money back on this deal. How long before someone misuses the autopilot and stuffs it into a wall or another car.
 
97prizm said:
I wonder how long it'll take Hertz to make their money back on this deal. How long before someone misuses the autopilot and stuffs it into a wall or another car.
Click to expand...

Did Hertz say they were buying the enhanced features? They may have but I missed it.
 
97prizm said:
I wonder how long it'll take Hertz to make their money back on this deal. How long before someone misuses the autopilot and stuffs it into a wall or another car.
Click to expand...
Interesting questions... A lot depends on their customers' demand, right? If the cost is too high or people hate Teslas, Hertz is in deep yogurt.
Hertz is paying full price for the cars; that hurts.
Pretty much zero maintenance; that helps.
Charging has to be figured out and installing chargers is an additional cost; that hurts.
If someone wants to rent a Tesla, they probably have to go to Hertz; a plus.
Resale is strong; that's a plus.
The Uber deal is a plus.

There are people who beat on rental cars, AP or not. That's what insurance is for.
I have to believe they have thought this huge investment through; success level remains to be seen.
For now, the only for sure winners are the TSLA shareholders.

Tom Brady
 
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I have no doubt Hertz knows what they are doing. But without Tesla's established supercharger network and on-dash locator I couldn't see this happening.
Here I am in a small town in a remote location on an island in the South Pacific, yet three 250 kW Superchargers have just appeared out of nowhere. That's commitment!
I'll just add that these are CCS Combo 2 plugs that are suitable for other EVs should Tesla decide to extend past Norway the opening of their network.

1635821603959.png
 
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Kiwi_ME said:
I have no doubt Hertz knows what they are doing. But without Tesla's established supercharger network and on-dash locator I couldn't see this happening.
Here I am in a small town in a remote location on an island in the South Pacific, yet three 250 kW Superchargers have just appeared out of nowhere. That's commitment!
Click to expand...
Tesla has committed to building thousands more SuperChargers.
Worlds largest SuperCharger Site
 
We have seen the TSLA share price drop many times after sudden and rapid price increases. That is simply a lot of shares being sold by individuals and institutional accounts who want to take some profits. It will stabilize after a few days and then continue the upward trend.

I'll bet there are a lot of people who took $25,000 out of an IRA or 401k plan and bought TSLA when it was $25 a share who have become millionaires in the last week.

If they can resist the temptation to sell now and have the mindset that their risk was only $25k less than 3 years ago, they might have two million dollars by this time next year.

TSLA's stock value is going to be measured not only from their EV sales, but also from their tangential business in the next couple of years.

Yep, Elon is whack. And so are the heads of GM, Ford and Stellantis but in a different way.

They might as well combine the three corporations and rename it Sisyphus.
 
No contract signed means the deal is not completed. And the stock? It is 2% of the entire S&P. Point in time is meaningless.
The demand for these cars is so strong that Hertz is getting zero volume discount.

As for me, "I got my money!"
 
There's an excellent article in the WSJ on the tax credits available to Hertz if they make this purchase. Basically post subsidy Hertz is paying a Camry price.
 
JeffKeryk said:
The next thing is car insurance; Tesla will charge on driving record, not zip code, age, sex, marital status, etc. And if this works, your house insurance is their logical next business venture.
TSLA is up another $95 today; more than $500 over the last 6 months. Folks, that whack Elon is looking pretty darn smart nowadays.

By the way, this post is not about cars; it is a lesson in business disruption.
Click to expand...

Tesla is expensive to insure outside of their own insurance. Tesla insurance does not even cover another brand's car in the family at all, not even multi-vehicle discount, because they have no control over the part cost or labor cost. They would likely never enter home insurance.

What I see is, Tesla use their own internal parts cost to reduce the insurance cost, thereby reduce the cost of ownership and make their car cheaper to own. At the moment their owners are likely mature (25+) upper middle class (making 150k per income earner), so they are likely lower risk to begin with, and therefore don't even need to deal with low income high crime zip code, street racers, wannabe, etc. It is nice to have only this pool and they are already pre-screened as low risk.

Maybe Mercedes / BMW / Lexus / Audi can do this but then the problem would be: why are they only doing this in the premium brand of the company but not Toyota, VW, etc.

The only thing I learned about this as a business lesson is to target upper middle-class high-income people as customers.
 
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JeffKeryk said:
Interesting questions... A lot depends on their customers' demand, right? If the cost is too high or people hate Teslas, Hertz is in deep yogurt.
Hertz is paying full price for the cars; that hurts.
Pretty much zero maintenance; that helps.
Charging has to be figured out and installing chargers is an additional cost; that hurts.
If someone wants to rent a Tesla, they probably have to go to Hertz; a plus.
Resale is strong; that's a plus.
The Uber deal is a plus.

There are people who beat on rental cars, AP or not. That's what insurance is for.
I have to believe they have thought this huge investment through; success level remains to be seen.
For now, the only for sure winners are the TSLA shareholders.

Tom Brady
Click to expand...
It's common for fleet orders to have custom configurations. Hertz could order the cars "detuned" with a less aggressive throttle response and top speed. It would just be a software change.
 
PandaBear said:
Tesla is expensive to insure outside of their own insurance. Tesla insurance does not even cover another brand's car in the family at all, not even multi-vehicle discount, because they have no control over the part cost or labor cost. They would likely never enter home insurance.

What I see is, Tesla use their own internal parts cost to reduce the insurance cost, thereby reduce the cost of ownership and make their car cheaper to own. At the moment their owners are likely mature (25+) upper middle class (making 150k per income earner), so they are likely lower risk to begin with, and therefore don't even need to deal with low income high crime zip code, street racers, wannabe, etc. It is nice to have only this pool and they are already pre-screened as low risk.

Maybe Mercedes / BMW / Lexus / Audi can do this but then the problem would be: why are they only doing this in the premium brand of the company but not Toyota, VW, etc.

The only thing I learned about this as a business lesson is to target upper middle-class high-income people as customers.
Click to expand...
PandaBear, I suggest you read Musk's Secret Master Plan from 2006. You don't seem to be a point-in-time thinker...
 
I just came to know about the Hertz Tesla deal yesterday. I was watching some internet video and the guy said hundred thousand cars and I had to rewind and listen to it again and finally Googled it. OK, I don't pay attention to news. I had been aware of something going on because of those very annoying Tom Brady commercials. As a NE Patriots fan, TB is now dead to me after dissing us in his fake retirement saga. TB and Tesla means guaranteed annoyance by 140% of the US population and then throw in a rental company and that means more like 160% of the population hating those commercials!! I came up 140% number via doing Venn Diagram addition as if I am a generic USA citizen :)

I do want to understand how is the Hertz business model as far as "bring the car with full tank else we charge you $10 per gallon" will work on electrical cars? Even with 300kW superchargers on Hertz premises (I don't see that happening!) turn-around time after rental is going to be extremely high. As far as being able to "top up the tank" at the airport gas station before returning the vehicle (my own mode of renting vehicle) is just NOT going to work here.

Besides, Tesla don't even have spare 100K cars. Is this just a paper deal??
 
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