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Hertz To Purchase 100,000 Teslas by End of 2022

Temerarius

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My one concern with this is privacy: Tesla's record everything you do. The rental car companies now have access to all of that data. It is great for them if they want to find out where that door ding came from that they want to charge people for, but do customers really want Hertz seeing that much about them?
You assume you are interesting enough to monitor...
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TessP100D

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Because they haven't gone into high volume production, they 100,000 Amazon van order doesn't count?
Not sure what you are trying to say here. Bloomberg has consistently been much more negative about Rivian than (even ignoring facts when convenient for them). They criticized the R1T for not being something it was never intended to be. Their review would be the same as knocking the Model X for not being able to haul sheets of plywood (true but irrelevant to the intended purpose of the vehicle). Being skeptical of the long term success is certainly a position they could take - but rather hard to defend given the backing and resources Rivian has. Being critical of the rumored IPO valuation is on par with defending the current TSLA valuation - both are more speculative than production/profit alone would justify.
No the Amazon deal doesn’t count.

get the trucks out and get them to real customers.

that’s what we signed up for.

not delivery vans
 

TessP100D

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My one concern with this is privacy: Tesla's record everything you do. The rental car companies now have access to all of that data. It is great for them if they want to find out where that door ding came from that they want to charge people for, but do customers really want Hertz seeing that much about them?

Solvable problems for sure, but a different world
Correct. Soon it will be. Sir according to your last rental safety score, you will now have to pay double.
 

Monkey

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I wonder where Hertz got the funds? Wern't they basically bankrupt?
Like many rental car companies, they sold off chunks of their fleet during covid and increasingly more so as used car values were skyrocketing. With rental car availability being an all-time low in many places, they’re charging a small fortune for what would normally be an economic rental. I travel quite a bit and rent cars regularly. The rental market the past 6 months or so has been complete hell.

100,000 cars is not that many for a fleet their size and they buy for their own label as well as underlying brands — Dollar, Thrifty... Just doing some light digging, Hertz was maintaining a fleet of over 420,000 vehicles in early 2020 and the bulk of that fleet was no older than 2017.

IMO it makes great sense. The low maintenance, tech features and high safety ratings of an EV fleet are beneficial. For me the hang up in this is that the base model 3 at about $40K is a bit pricey for the average rental fleet vehicle. I’m wondering if they’re getting customized features and software too? Like how many can enable/disable navigation and other features in their rental vehicles depending on what the customer pays for. Do they feel that the fuel savings and low maintenance costs will offset the vehicle prices? I wonder if they’re striking a deal on collision repair costs because that’s the real elephant in the room with Tesla and potential fleet operators.

Their ICE vehicles are often cycled out quickly, sold while they still carry some tangible value. Perhaps they’re thinking they may do better to leverage the high-mileage drivetrains within these EVs and keep them in service longer.

I'm also curious how this affects delivery timing. I looked at a Model Y and it's already estimating May for delivery -- yikes.
It’s definitely going to impact deliveries for a bit. Once the production lines in Austin are running full steam, it won’t matter. They will have to leave the 3/Y lines in Fremont operational longer than planned I think until Austin is caught up.
 

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DucRider

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Never said that...but since Magna is a seasoned manufacturer of BMW, Mercedes, Supra, etc...feel they'll have a better output at the start.
Maybe, but not necessarily.
Bringing up a completely new model/design/drivetrain on a new line freshly designed to build it will have essentially the same challenges Rivian faced (maybe a few less supply chain issues a year from now - hopefully).
They will still need to make pre-production units, extensively test them (hopefully!), then start on production spec vehicles with a slow ramp up.
Quicker to volume than Rivian? Unlikely at this point as they don't even have prototypes.
 

DaveA

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Maybe, but not necessarily.
Bringing up a completely new model/design/drivetrain on a new line freshly designed to build it will have essentially the same challenges Rivian faced (maybe a few less supply chain issues a year from now - hopefully).
They will still need to make pre-production units, extensively test them (hopefully!), then start on production spec vehicles with a slow ramp up.
Quicker to volume than Rivian? Unlikely at this point as they don't even have prototypes.
They’ve had two prototypes for last 18 months. One was with a VW platform and other with Magna platform. Production spec models being shown next month at LA Auto show and configurator to follow shortly thereafter. We’ll see how it goes. ?‍♂
 

DucRider

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They’ve had two prototypes for last 18 months. One was with a VW platform and other with Magna platform. Production spec models being shown next month at LA Auto show and configurator to follow shortly thereafter. We’ll see how it goes. ?‍♂
Yes, but that is very different from preproduction prototypes built on the line and then tested. Having them on two different platforms shows just how far from production they really are. Rivan had two hand built prototypes for Long Way Up. That was just the very beginning of their testing program, and they were very different from what is being produced today. I'm not knocking Fisker, but setting unrealistic expectations by reading more into what info they release will result in a repeat of the posts often seen here.

Examples:
"All LE preorders will have Guide contacts by Thanksgiving"
"I read that to be a steady stream of contacts from the day the email was sent. They mislead me and failed at communication - AGAIN!!!"​
 

Tim-in-CA

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I have an offer on my 2017 X 100D with 51k miles on it.. for more than I paid for it... now if only I could get an ETA on my R1T I could sell it...
Same for me. I can sell my 2020 Telluride for more than I paid (including tax)! Wish I more visibility into when my R1S order will come through. Gonna hold on to my Model S (for now)
 

pc500

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This might change that.

I suspect a big reason to cycle through the fleet of cars is "warranty expired" followed closely by "maintenance costs".

EV's don't have the same level of maintenance needs, so it will save them those costs upfront, and in theory, they could hold on to these vehicles longer (thus reducing the overall cost of fleet acquisition on top of maintenance).

I can see why they went Tesla as well, SuperCharger network, plus production levels (no other manufacturer is cranking them out like Tesla is right now).
Three factors:

1) Car is the cheapest part of transaction, in most cases. The rent, salaries, overhead all cost more.

2) They buy their cars (non-Tesla) super cheap. When they resell them, they actually don't loose that much $.

3) Tesla was chosen for the charging network; and mass brand appeal. Not much more. Hertz tried the leaf back in 2012 and that was a huge failure.
 

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I'm shocked that Tesla comprised as much as 11% of their fleet. I honestly though it would be <2%.
I'm hearing that hertz is really struggling to rent the model 3's... No surprise there. If I was doing very little driving and needed a rental it would be perfect, but I didn't want to spend time charging on my trip...
 

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I'm hearing that hertz is really struggling to rent the model 3's... No surprise there. If I was doing very little driving and needed a rental it would be perfect, but I didn't want to spend time charging on my trip...
I think the uncertainty from non-EV owners would be be a problem for Hertz.

But typical rental is mostly local and no charging. Distance travel is almost always going to be interstate and easy charging with a Tesla.

95% of the time I'm only putting gas in a rental to return the car. I assume when renting an EV that fueling up for return isn't needed, which would be a nice benefit.

The 100,000 purchase is certainly an "up to" number. Hertz isn't so stupid that they would commit to a huge number of vehicles that are largely novel to their customers.
 

Inkedsphynx

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Since we're thread necro'ing I just wanted to quote this since it's aged so well.

Good thing I've got a strong imagination so I can imagine what my CT would look like in the driveway next to my real physical R1T that I've been driving for 10 months.

Because Rivian has produced less than 100 vehicles and is looking more like vaporware, as Elon Musk points out, “Prototype production is easy, but high-volume production is hard.”
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