You Can Now Drive Home A Tesla Model 3 For As Low As $14K - Here's How
Portfolio Pulse from Benzinga Neuro
Hertz Global Holdings Inc (NASDAQ:HTZ) is selling its fleet of Tesla Inc's (NASDAQ:TSLA) Model 3 vehicles starting at $14,000 after applying a $4,000 U.S. tax credit for used EVs. The sale follows Hertz's expansion of its Tesla fleet, which now includes Model Y vehicles. The low prices are due to high mileage and wear from rental use. Hertz's Q3 earnings call revealed that the high cost of collision and damage repair for EVs, particularly Teslas, negatively impacted their results. A similar trend of phasing out Teslas from rental fleets is observed in Europe with Sixt SE, due to higher repair costs and lower resale values of electric cars.
January 11, 2024 | 4:32 am
News sentiment analysis
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NEGATIVE IMPACT
Tesla's brand visibility may increase due to Hertz's sale of used Model 3s, but concerns about high repair costs and lower resale values, as mentioned by Hertz and observed by Sixt SE, could negatively impact investor sentiment.
While the sale could promote Tesla's vehicles and lead to more people experiencing the brand, the mention of high repair costs and lower resale values could concern investors about the potential financial implications for Tesla. The relevance is significant as Tesla's vehicles are the subject of the sale, but the importance is moderate as this is a secondary effect related to market perception rather than Tesla's direct operations.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 70
POSITIVE IMPACT
Hertz is selling used Tesla Model 3s at low prices due to high mileage and wear, which could attract budget-conscious consumers and potentially impact the company's used vehicle sales positively in the short term.
The sale of used Tesla vehicles by Hertz could lead to an increase in revenue from the used car segment, potentially offsetting the negative impact of high repair costs mentioned in their Q3 earnings call. The relevance is high as the news directly involves Hertz's sales strategy, and the importance is moderate given that it's a single event that may not have a lasting impact on the company's overall financial health.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 80