Hertz orders 100,000 Teslas for its rental fleet

[dan_b]

https://www.bloomberg.com/news/articles ... tock-soars

Crikey that's a big order! Wonder if they get a volume discount?!

[nowty]

From the article,

It’s the single-largest purchase ever for electric vehicles and represents about $4.2 billion of revenue for Tesla Inc., according to the people, who asked not to be identified because the information is private. While car-rental companies typically demand big discounts from automakers, the size of the order implies that Hertz is paying close to list prices.

The cars will be delivered over the next 14 months, and Tesla’s Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November, the people said. Customers will have access to Tesla’s network of superchargers, and Hertz is also building its own charging infrastructure, they said.

[Oliver90owner]

Dunno what the reporter thinks, but I would have thought ‘close to cost’, not ‘close to list’ prices.

Also, bankruptcy in the US means something entirely different than the norm in the UK. It often just means they want to re-organise/restructure their finances, not that they are too deep in debt to carry on.

[dan_b]

Maybe this is why Tesla stopped its referral programme - they knew this order was incoming!

[Mart]

If those are SR+ models, then they are about $42k each, so Hertz may be paying full price. I think this is part of Tesla's policy, so that fleet sales don't undermine secondhand values later on, as they can do when large fleets buy volumes at low prices, then those vehicles hammer the sh value when they get auctioned off 3yrs later.

[Mr Gus]

Maybe my letters to the CEO's of these big companies & the lack of EV to rent, & the farce where supposed pre-booking, testing the personnel over the phone was "experienced" at Geneva airport Swiss & French side, plus in resort) despite advertising their availability, the actual stock numbers within the firms that amounted to a mere handful, helped nudge somebody after all !?
(as logged on St Elsewhere forum) TBH I doubt it, & i'll never know.

It got so bad that was a big consideration as to why we put the money down on the Tesla in the end, that & knowing there were Tesla rapid chargers on the valley floor at Sallanches.

[dan_b]

Wonder how long until the other big car rental firms feel like they also have to move into large BEV fleets?

[Stinsy]

The economics of rental fleets are fascinating. They frequently buy new cars at such large discounts that they sell them for a profit after 6-12 months. If car manufacturers have airfields full of new cars and they need them gone for their quarterly numbers, the big rental companies can make that happen if the price is good enough.

BEVs are a big change in operating environment. The big discounts aren't available because consumer demand outstrips manufacturing capacity. Are the rental companies expecting to hold on to vehicles for longer?

[dan_b]

Tesla shares are up $60 so far today already on this news- about 6%.

[nowty]

If those are SR+ models, then they are about $42k each, so Hertz may be paying full price. I think this is part of Tesla's policy, so that fleet sales don't undermine secondhand values later on, as they can do when large fleets buy volumes at low prices, then those vehicles hammer the sh value when they get auctioned off 3yrs later.

And also the income to Telsa might not include sales taxes, I paid over £10k in VAT for mine, so they might even be long range versions or a mixture of the two.