Elon Musk Wants You To Try Teslas Via Hertz Despite Car Rental Company's Plan To Downsize EV Fleet
Portfolio Pulse from Anan Ashraf
Elon Musk encourages renting Tesla vehicles through Hertz to try them out, despite Hertz's plans to downsize its EV fleet, including Tesla cars, due to higher repair costs and lower resale values affecting EBITDA. Hertz CEO Stephen Scherr indicated a shift towards purchasing EVs from other manufacturers and a non-rigid timeline for having 25% of its fleet electric by end of 2024.
November 24, 2023 | 10:25 am
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NEUTRAL IMPACT
Tesla's promotion of renting its vehicles through Hertz may be impacted by Hertz's plan to reduce its Tesla fleet, potentially affecting Tesla's exposure and rental sales.
While Tesla is promoting its vehicles through Hertz rentals, Hertz's downsizing of its Tesla fleet could lead to reduced rental sales and exposure for Tesla. However, the overall impact may be limited as Tesla has a strong brand and sales channels beyond Hertz rentals.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Hertz's announcement to scale back its EV fleet, particularly Tesla vehicles, due to higher repair costs and lower resale values, may affect its stock price and investor sentiment.
Hertz's decision to reduce its Tesla fleet and focus on other EV manufacturers could be seen negatively by investors, as it suggests challenges in managing EV costs and profitability. This could lead to a negative short-term impact on Hertz's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80