Hertz's Positive Feedback on Tesla's Fleet Performance
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Chapter 1: Hertz's Strategic Move into Electric Vehicles
Last year, Hertz made a significant decision by purchasing 100,000 Tesla Model 3 vehicles, aiming to enhance their electric vehicle offerings. Although the complete delivery of these cars is anticipated to be finalized by late 2022 or beyond, recent updates from Hertz during their Q2 Earnings Call revealed a favorable reception towards the Teslas already in their fleet.
In a report by Joey Klender from Teslarati on August 1st, it was mentioned that Hertz currently provides electric vehicle rentals in 16 major U.S. cities. This initiative underscores the importance of Tesla and other partners, like Polestar, in achieving Hertz's operational goals.
Section 1.1: Customer Experiences with Tesla Rentals
Hertz CEO Stephen Scherr shared insights on the performance of the Teslas rented out, especially among Uber drivers. He stated:
"To date, over 15,000 Uber drivers have opted for Tesla rentals from Hertz, averaging a minimum fee of $334 weekly, translating to over half a million transactions. Feedback from drivers has been encouraging, particularly as fuel prices remain high, prompting strong demand from Uber riders. Our Teslas allow Uber drivers to stand out and enhance the experience for their passengers, which in turn boosts their potential earnings."
Hertz has received approximately 20,000 electric vehicles from various manufacturers so far. However, with Tesla still committed to delivering the full order of 100,000 vehicles, there's a considerable number of vehicles yet to be supplied.
Subsection 1.1.1: Maintenance Advantages of Electric Vehicles
In discussing the maintenance advantages of their electric fleet, Scherr noted:
"In terms of maintenance costs, we are operating at about 50% to 60% of what we typically spend on internal combustion engine (ICE) vehicles. If there's any surprise, it might be slightly higher tire expenses, but overall, we are satisfied with the results, which align with our initial expectations when we initiated this strategic transition."
CFO Kenny Cheung further explained the expected future impact of their growing electric vehicle fleet:
"As our fleet ages and becomes younger, we anticipate a reduction in maintenance costs. We foresee improved operational efficiency as we replace costly third-party labor with our own staff, which will help us lower maintenance expenses as we continue to expand our EV fleet."
Section 1.2: Positive Financial Implications for Hertz
As Hertz continues to add electric vehicles, it's clear that their financial outlook could benefit significantly. While fulfilling such a substantial order from Tesla presents challenges, early feedback indicates that Tesla's vehicles are performing exceptionally well.
Chapter 2: Video Insights into Hertz and Tesla
This video titled "Should You RENT A Hertz Tesla Model Y Long Range?" discusses the advantages and experiences of renting a Tesla Model Y from Hertz, showcasing driver testimonials and the overall rental process.
In another informative video, "Hertz Cuts Back Tesla Fleet, Giga Berlin Production Pause, Cybertruck Deliveries," the discussion centers on Hertz's current fleet management, production pauses, and the future of Tesla's Cybertruck deliveries.
At the time of writing, Tesla (TSLA) shares were trading at $923.43.
DISCLAIMER: The author is not a financial advisor or expert. The opinions expressed in this article are intended for general educational purposes and entertainment only. They are not intended in any way to provide specific advice or recommendations for any individual or on any specific security or investment product. Individual investors are responsible for their own money and investment decisions. Remember, there is no guarantee that stocks or cryptocurrency will fulfill the analysts' projections or increase in value. Please always do your own due diligence and if you invest, do so with proper caution. The author holds no position in Tesla at the time of publishing.
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