Tesla Less Appealing To Car Rentals? Europe's Sixt To Phase Out Tesla Cars After Hertz
Portfolio Pulse from Anan Ashraf
Europe's largest car rental company, Sixt SE, is reducing the number of Tesla Inc vehicles in its fleet due to higher repair costs and lower resale values, similar to concerns previously raised by Hertz Global Holdings Inc. Sixt still plans to electrify 90% of its European fleet by the end of the decade. Hertz, which had aimed for 25% of its fleet to be electric by 2024, is now considering purchasing EVs from other manufacturers with more established part supply networks and lower price points.
December 04, 2023 | 9:53 am
News sentiment analysis
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NEGATIVE IMPACT
Tesla may face a negative impact as Sixt SE plans to reduce Tesla vehicles in its fleet due to high repair costs and lower resale values, which could affect Tesla's sales to rental fleets.
The decision by Sixt SE to phase out Tesla vehicles from its fleet suggests a potential decrease in bulk sales to rental companies, which could negatively impact Tesla's revenue and market perception in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Sixt SE's decision to reduce Tesla vehicles in its fleet may have a neutral impact as the company remains committed to electrifying its fleet, albeit with different EV manufacturers.
While Sixt SE's reduction of Tesla vehicles could suggest a shift in its procurement strategy, the company's commitment to electrifying its fleet by 90% by 2030 indicates a continued investment in the EV market, which may balance out any negative impact.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Hertz may experience a neutral to positive short-term impact as it plans to diversify its EV fleet by purchasing from manufacturers with lower costs and established part supply networks.
Hertz's strategy to purchase EVs from various manufacturers could lead to cost savings and reduced dependency on any single supplier, which may positively influence its financial performance and investor sentiment.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70