Hertz's Tesla Fire Sale Continues As Depreciation Costs Mount

Investment Analysis Clubs Macro Economic Trends and Risks
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Hertz’s Tesla Fire Sale Continues As Depreciation Costs Mount

intercst

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Seems disingenuous for the title to be about tesla. I scrolled through pages and pages of bolts. They are selling bolts, hyundai, subaru (who knew?), silverado, etc. Everything electric, not just teslas.

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  • It’s proof that Tesla is NUMBER ONE!
  • They want Clicks
  • Tesla gives them Clicks!

Years ago I read an article about extracting info from business articles. Every business calls itself “A leader” but there is only one “The Leader.” When reading about companies 'The Leader" tends to be the first mentioned. That is inline with our memory ladder, we only have so much space for any category and most people can only name the top dog. Try this experiment, ask people about products and events. They are likely to name the top dog:

  • Toothpaste: Colgate
  • Who was the first one to fly nonstop across the Atlantic: Charles Lindbergh
  • Who was second: I don’t know

Try it!

The Captain

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Hertz made a really stupid mistake. Really an inexcusable mistake that nearly cost them solvency (and did cost the CEO their job). Whenever they begin acquiring ANY new model, they ease into it. Start with 500 or 1000 vehicles and see how they perform - how do the customers like them? Are they easy to maintain? How much downtime do they require between each rental? Etc. Somehow in this case, instead of easing into it, they went whole hog and bought something like 100,000 EVs right off the bat. And that wasn’t just a “new model”, it was a “new and quite different class of vehicles”.

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Rentals have always been a way to try out a new concept vehicle to see how it does and if it fits your need. Hertz decision to buy was ok. But consumer acceptance was slow.

Decision was hurt by the new EV price war causing used values to fall rapidly. Great for the buyer and probably adding pressure to Tesla (as well as others). No surprise that manufacturers are slowing expansion and trimming production.

In St Louis we have a closed mall with a parking lot full of Hertz Teslas. Its a real problem. You would think they are for sale but i don’t know where.

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