Hertz goes electric

[begreen]

Hertz announced they will be purchasing 100,000 Teslas in a major commitment toward fleet electrification. Tesla is now worth a trillion dollars. More than the GDP of many nations.

 

[stoveliker]

Saw that, yes. I wonder if the used car market two years from delivery to Hertz will contain more affordable Tesla 3's?
Or will rental companies deviate from their normal 2-year-and-sell inventory management?

 

[clancey]

I think that is a wonderful business decision and it will help both stock market holders and the country as well...Good for them..clancey

 

[peakbagger]

I wonder how they will handle the final fill up prior to returning? That was a major scam that they no doubt made a big profit from. I would be in a town I may never been before taking an exit off an interstate highway rushing for a plane and rarely did I ever see a gas station. They would top up the tank when returned and charge some exorbitant rate to top off the tank usually with service fee or charge some up front fee for a fill up . Clients do not like to pay those fill up fees or insurance. So how is that going to work with a Tesla? An electric takes a lot longer to recharge the battery and the infrastructure is not there to do it at most hotels or client sites. My guess is its a big surcharge on the rental bill. It also means the airport needs to do a major electrical service upgrade to the rental agencies as they are going to need a lot of juice during peak periods.

I also wonder how they are going to handle the rentals during high demand periods? Most rental places have the renters drop off the cars and clean them up and out to the line in 15 or 20 minutes, that is not going to happen with car that needs to be charged. No doubt it eventually will be figured out but luckily I dont have to travel for business anymore.

Like a lot of the transition to low carbon economy, the devil will be in the details.

 

[EbS-P]

Think of the maintenance saving for 100,000 cars over two years. And if they are reliable Tesla not updating every two or three years means they may push out the their fleet age to (gasp) 4-5 years. Tesla depreciation is less than any other competitors.

Charging on return will be an easily solved issue. They will just have a set rate or just build a charge into the price.

 

[peakbagger]

FYI. many rental companies make a profit by turning their cars over. Not sure how or why it works but expect that they buy for below sticker, take depreciation and still can sell them at a profit.

 

[clancey]

Insurance options would be different and they would maybe charge on return after the rental as was said before..clancey

 

[bholler]

I wonder how they will handle the final fill up prior to returning? That was a major scam that they no doubt made a big profit from. I would be in a town I may never been before taking an exit off an interstate highway rushing for a plane and rarely did I ever see a gas station. They would top up the tank when returned and charge some exorbitant rate to top off the tank usally with service fee or charge some up front fee for a fill up . Clients do not like to pay those fill up fees or insurance. So how is that going to work with a Tesla? An electric takes a lot longer to recharge the battery and the infrastructure is not there to do it at most hotels or client sites. My guess is its a big surcharge on the rental bill. It also means the airport needs to do a major electrical service upgrade to the rental agencies as they are going to need a lot of juice during peak periods.

I also wonder how they are going to handle the rentals during high demand periods? Most rental places have the renters drop off the cars and clean them up and out to the line in 15 or 20 minutes, that is not going to happen with car that needs to be charged. No doubt it eventually will be figured out but luckily I dont have to travel for business anymore.

Like a lot of the transition to low carbon economy, the devil will be in the details.

Most hotels I have been to now have multiple chargers

 

[peakbagger]

The few chargers at hotels I have seen a cluster to 2 or 3 level two chargers usually full up, some are level 1 . Most guests with EVs seem to plug it in and forget it overnight. Most are set up as a courtesy and do not charge for charging. I have not seen any Chargepoint stations locally, that reportedly charge a fee for connect time

 

[bholler]

The few chargers at hotels I have seen a cluster to 2 or 3 level two chargers usually full up, some are level 1 . Most guests with EVs seem to plug it in and forget it overnight. Most are set up as a courtesy and do not charge for charging. I have not seen any Chargepoint stations locally, that reportedly charge a fee for connect time

Pa turnpike has atleast 4 at every rest stop with a credit card slot. The one grocery store chain Weis is putting them in at every location as well

 

[begreen]

Hertz may have negotiated for the installation of superchargers at their primary locations. If so, the car can be charged to >80% within an hour.

 

[jebatty]

The Hertz deal is a huge opportunity for Hertz and a brilliant move by Tesla. What better way to get a Tesla into the hands of the public. A Tesla Model 3 is an amazing vehicle, and once people get a taste of the driving experience with a Tesla, sales follow.

Tesla's stock price, while quite volatile normally, really took off, and the Hertz deal now also has been a huge win for the shareholders.

 

[EbS-P]

I saw/read heard 50% of this fleet will be used by Uber drivers. Not sure the details and if Uber was involved but that makes more sense that Hertz is now managing fleets for other companies. Not sure how that works out for U we drivers but it might be a tax benefit.

 

[sloeffle]

I think once other electric vehicle companies "catch up" with Tesla I don't see them staying ahead of the pack. IMHO - what sells a Tesla is the technology that they have at this current time.

Their build quality isn't very good according to J.D. Power. If they would have let their owners be surveyed they would have roughly been ranked 31st out of 34 car makers. Chrysler ranks better than what they do. If Tesla's are so good, why wouldn't they let their owners be surveyed ? A recent co-worker just bought a Model Y and she said her husband had to take the car back already to have it fixed because the gaps in the body panels were so bad. She also said the buying, and delivery experience was miserable. Customers who've bad buying experiences are generally not repeat customers.

 

[woodgeek]

I think the build quality is a moving target, honestly. There were clearly quality issues with each model when it was early in production (and getting reviewed), but most of those have been ironed out as each model's production has scaled.

 

[stoveliker]

I saw/read heard 50% of this fleet will be used by Uber drivers. Not sure the details and if Uber was involved but that makes more sense that Hertz is now managing fleets for other companies. Not sure how that works out for U we drivers but it might be a tax benefit.

That surprises me, as, given the cost of a Tesla (that somehow has to come from any driver, regardless of commercial model), it seems hard to squeeze that out of Uber drivers who do not bring in that much already... I'd be curious what deal this would be, if you are correct...

 

[EbS-P]

Battery technology will drive the EV sector. Battery cost and range will be the biggest favors in a customer’s decision. If you have a jump on your competition in this it is a meaningful advantage. Tesla spends 0$ on marketing. Will they have to in the future maybe but they don’t want to. Buying experience is a valid concern. But right now they are selling everything they build right off the production line.

I don’t see how they are worth a Trillion dollars. But so far they have little market competition, a product that is valued, and still building out their manufacturing capacity in a way that scales. The idea of mono casting the frame is a revolution as is an integral battery structure. They built a car then built the customer base and didn’t build a car for a customer demographic. I want one… but it has to be comfortable and usable for 7 passengers everywhere we go.

 

[woodgeek]

I don’t see how they are worth a Trillion dollars.

Apple is worth more than a trillion dollars, and has a finite set of users, mostly in the US, and <$1000 per year revenue per user. If Tesla can sell an EV to the same number of people and clear $1000 in annual revenue, why are they not worth what Apple is worth?

FTR: I am NOT a Tesla investor.

The real question is why are the auto majors so little valued? The answer is super low margins and competition.

 

[sloeffle]

Apple is worth more than a trillion dollars, and has a finite set of users, mostly in the US, and <$1000 per year revenue per user. If Tesla can sell an EV to the same number of people and clear $1000 in annual revenue, why are they not worth what Apple is worth?

FTR: I am NOT a Tesla investor.

The real question is why are the auto majors so little valued? The answer is super low margins and competition.

Tesla makes a lot of money from selling emission credits. I wonder what will happen when that piggy bank runs dry ?

 

[bholler]

Tesla makes a lot of money from selling emission credits. I wonder what will happen when that piggy bank runs dry ?

They will be fine. I am not a fan of musk as a person but he has done several things no one thought was possible. And I guarantee if selling emissions credits goes away he will figure out how to make it work.

 

[EbS-P]

Apple is worth more than a trillion dollars, and has a finite set of users, mostly in the US, and <$1000 per year revenue per user. If Tesla can sell an EV to the same number of people and clear $1000 in annual revenue, why are they not worth what Apple is worth?

FTR: I am NOT a Tesla investor.

The real question is why are the auto majors so little valued? The answer is super low margins and competition.

I think Tesla is part software company part auto manufacturer. Look at the price to unlock the top level self driving mode. What’s stopping them from charging to open the doors.

 

[EbS-P]

They will be fine. I am not a fan of musk as a person but he has done several things no one thought was possible. And I guarantee if selling emissions credits goes away he will figure out how to make it work.

Falcon wing doors. Just that saga demonstrates a lot of his philosophies. They are still there on the new X and it’s almost universally agreed they are cool but not much more rub squeak and are expensive to fix. The only support is from parents who like how it keeps them dry when buckling kids in the rain. (Oh no I’m melting!).

 

[bholler]

Falcon wing doors. Just that saga demonstrates a lot of his philosophies. They are still there on the new X and it’s almost universally agreed they are cool but not much more rub squeak and are expensive to fix. The only support is from parents who like how it keeps them dry when buckling kids in the rain. (Oh no I’m melting!).

They also mean no dinging cars next to you. Easy to open big doors in tight spaces etc.

I agree they are doing some things just to garner attention with some of their vehicles but every company does that. They just push the limits a bit.

 

[SpaceBus]

Falcon wing doors. Just that saga demonstrates a lot of his philosophies. They are still there on the new X and it’s almost universally agreed they are cool but not much more rub squeak and are expensive to fix. The only support is from parents who like how it keeps them dry when buckling kids in the rain. (Oh no I’m melting!).

They solve the issue of children opening doors into other cars without having "minivan" sliding doors. That's it, the whole claim to fame. I like the Model X because it is a rocketship with useable space.

 

[bholler]

They solve the issue of children opening doors into other cars without having "minivan" sliding doors. That's it, the whole claim to fame. I like the Model X because it is a rocketship with useable space.

Then there is the plaid