Hertz is scaling back its EV ambitions because its Teslas keep getting damaged

Re:Hertz is scaling back its EV ambitions because its Teslas... by alemanek on Sunday October 29, 2023 @02:56PM (#38061487)

Consider that normally rental car companies get steep discounts on their bulk buys. They didn’t with their Tesla order which further hurts them. But, here is the overly simplified normal math:

(Resale Price + Rental Income - Maintenance - Purchase Price) / 2 years

Trick is that they generally flip these vehicles after 2 years and upsell an auto warranty which a big profit center as well. Resale price tanks and there goes all their profit.

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Re:Hertz is scaling back its EV ambitions because its Teslas... by bsder on Sunday October 29, 2023 @05:52PM (#38063202)

I don't think "2 years" is valid anymore. It seems like the rental companies are hanging onto their cars for closer to 5 years, now.

This would also link into their "extra damage" problem.

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Re:Hertz is scaling back its EV ambitions because its Teslas... by technetist on Monday October 30, 2023 @12:44AM (#38065781)

I mean the Hertz/Tesla deal only started end of 2021 [1] and less than half of the ordered fleet was available by end of 2022 [2].

It’s kind of disappointing if they are getting noticeably beat up after a year.

[1] https://apnews.com/article/business-lifestyle-travel-car-ren... [2] https://electrek.co/2023/02/08/hertz-half-massive-tesla-orde...

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