Hertz Is Now Selling Tesla Cars At Bumper Discounts After Announcing A Scale Back On EVs
Portfolio Pulse from Anan Ashraf
Hertz Global Holdings Inc (HTZ) is selling its used Tesla (TSLA) vehicles at discounted prices on its website. The sale includes 518 Tesla cars, with prices starting at $20,700 for a 2021 Model 3 and $31,100 for a 2022 Model Y. This move follows Hertz's announcement to scale back its EV fleet due to higher repair costs and a decline in Tesla's MSRP, which has negatively impacted Hertz's EBITDA.
January 10, 2024 | 4:17 am
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NEGATIVE IMPACT
Hertz's sale of used Tesla vehicles at lower prices could suggest a potential oversupply in the market, possibly affecting Tesla's brand value and new vehicle sales.
The discounted sale of Tesla vehicles by Hertz could lead to concerns about an oversupply of used Teslas in the market, which might negatively affect Tesla's brand value and the demand for new vehicles. This could potentially put downward pressure on TSLA's stock price in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Hertz is selling off its Tesla EV fleet at discounted prices, which may indicate an attempt to improve its financials after higher repair costs and lower resale values impacted its EBITDA.
The sale of used Tesla vehicles by Hertz could be seen as a strategic move to mitigate the financial impact of higher repair costs and lower resale values. However, it's uncertain how this will affect the stock price in the short term, as it could be perceived both as a positive step towards financial recovery or as a sign of ongoing challenges with the EV fleet.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80