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Another Way to Invest in Tesla - Operate a Model S Chauffeur/Rental Company

Discussion in 'TSLA Investor Discussions' started by Curt Renz, Oct 1, 2014.

  1. Curt Renz

    Curt Renz Active Member

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    #1 Curt Renz, Oct 1, 2014
    Last edited: Oct 1, 2014
    A new chauffeur and car rental company in Chicagoland will exclusively feature the Tesla Model S. Its fleet arrived on Monday. The company is called E-Motion Chauffeurs and Hires and will officially open for business next Monday.

    Website: http://www.emotionchicago.com
    Twitter: https://twitter.com/emotionchi
     
  2. BlueTan85

    BlueTan85 Member

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    If they don't have iPhone and Android apps, so that people can easily hire a car, then they're fools. This is the Uber era.
     
  3. Electric700

    Electric700 Member

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    This is an awesome idea. I hope they're successful.

     
  4. republic

    republic Member

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    Driving commercially is a great way to spread the word about Tesla. I drive full-time for Lyft as a second job and carry about 1,000 passengers a month, most of whom had little to no knowledge of electric vehicles. It doesn't make me much money ($10/hour on average) after accounting for depreciation (6,000 miles per month), but I'm willing to fight the good fight.
     
  5. chickensevil

    chickensevil Active Member

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    Wow, 10$, the site is suggesting 20$ an hour for DC, is this just because of you offsetting that depreciation or is their estimate off on their site? It seems like an interesting idea to make some side cash and have fun in the process.
     
  6. jhm

    jhm Active Member

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    The Model X will be the bomb for limos.
     
  7. republic

    republic Member

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    $22/hour minus taxes (40%), depreciation, insurance, tires, and Chargepoint. On a weekday like today, net pay is closer to $7/hour. This doesn't count time spent on the frequent charging trips to the Bethesda SC.

    I bought the car as an advocacy vehicle, and prior to driving for Lyft would drive sluggers down to Springfield and Woodbridge (for free) just to sell the brand.
     
  8. yobigd20

    yobigd20 Well-Known Member

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    45% taxes?? Where do you live?
     
  9. neroden

    neroden Happy Model S Owner

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    No, that's about right. Social Security and Medicare taxes on self-employment amount to 15.3%. (If you have an employer, this is somewhat hidden but it's obvious if you are running your own business.) Federal income taxes on earned income in the top bracket (I'm guessing Republic has a day job as well) are 39.6%. There's a slightly convoluted interaction between them, but it adds up to roughly a 50% marginal rate, before any state tax. (Marginal means the rate paid on *extra* income; the rate Republic is paying on his day job income will be lower.)

    I know most people don't have a clue about US tax structure. The taxes on dividends or interest are much, much lower (so you get taxed a lot for working, but pay very little for sitting on your ass with money in the bank).
     
  10. keithz

    keithz Member

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    I don't think there's much of a business case for running an EV based taxi/jitney service. The car costs too much to allow for a decent profit. Now, when the Model 3 comes out....
     

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