Hertz Places $4.2 Billion Order with Tesla

Rental car company Hertz has ordered 100,000 units of Tesla’s Model 3. The full price for the order was about $4.2 billion.

Chief Executive Elon Musk was sure to note that Hertz paid full price for the vehicles.

“To be clear, cars sold to Hertz have no discount,” he said on Twitter. “Same price as to consumers.”

https://twitter.com/x/status/1452794619410927625

“As the leading car rental company, we now offer the largest electric vehicle (EV) rental fleet in North America,” Hertz said in a release. “Our flagship EV is the Tesla Model 3, a luxurious 4-door sedan that features up to 260-mile driving range on a full charge and is the best-selling electric car in the world.”

Demand for Tesla cars is strong. The company had record deliveries in Q3 despite supply chain challenges caused by the pandemic. The company also stands to significantly increase production with the addition of two new factors – Giga Texas and Giga Berlin.

There have been several examples of fleet owners making a big transition to EVs. Amazon, for example, consigned startup Rivian to produce 100,000 electric delivery vans. Tesla also reportedly has thousands of orders for its upcoming Tesla Semi.

 

[jboy210]

Dang, people are going to supercharge and beat the crap out of those Hertz rentals. Keep an eye out for those once they hit the used market.

Based on the comments in these forums I am sure a lot of current Model 3 owners are pretty hard on their cars. It is an entry-level performance sedan, like a BMW 3 series, and those attract someone who wants to drive a car harder.

 

[jvanyc]

I can’t really believe the “there were no discounts given”. The total deal vs. 100K cars, making it 42K per car is POSSIBLE but there really isn’t anything currently that Tesla has that would fit that bill except the cheapest M3 SR, etc.. I cannot IMAGINE that Mark Fields didn’t want to have some Mdoel S or X in the Hertz Fleet, and said just give me 100K of the cheapest cars you can make and we’ll pay over time and give you feedback. Everybody wins, sort of, but Tesla seems to be able to sell everything at a premium to 12 months ago pricing, and will continue to pump things up a bit more as Federal tax credits get approved (staring 1/1/22) so this could actually be a money loser for TESLA in 2022/2023 vs. what they could make per vehicle in the consumer/commercial market. Just my .02$

Elon Musk has never lied or exaggerated before.

 

[Mikedrives]

Dang, people are going to supercharge and beat the crap out of those Hertz rentals. Keep an eye out for those once they hit the used market.

Same as any rental. I knew a guy who worked for one of the rental companies, and said customers could never be as hard on the cars as the employees are. They had a car wash that was half a level below the parking lot, with a ramp going up to parking lot level when they came out of the car wash. The employees had a contest among themselves to see who could get all four wheels of the car off the ground coming out of the car wash. He said the Lincoln Town Car was the hardest to get all four wheels off the ground, but they could do it.

 

[Mikedrives]

You can't tell the difference between a Camry and a Model 3? Okay.

I mean, really. I drove a Camry and an M3 yesterday. There's kind of a big difference.

 

[Mikedrives]

Based on the comments in these forums I am sure a lot of current Model 3 owners are pretty hard on their cars. It is an entry-level performance sedan, like a BMW 3 series, and those attract someone who wants to drive a car harder.

I dunno, I see a lot of women and older people in M3s, including my wife, who keeps it in chill mode. Good thing I don't drive it much or it would be dead by now. I think the powerful regen is the only reason I haven't gotten a ticket yet.
Met a friend of a friend the other day who has a Dual Motor but says he doesn't like to go fast, which is CRIMINAL. I should switch our cars and transfer the logo on the back and he might never know.

 

[jboy210]

I dunno, I see a lot of women and older people in M3s, including my wife, who keeps it in chill mode. Good thing I don't drive it much or it would be dead by now. I think the powerful regen is the only reason I haven't gotten a ticket yet.
Met a friend of a friend the other day who has a Dual Motor but says he doesn't like to go fast, which is CRIMINAL. I should switch our cars and transfer the logo on the back and he might never know.

My wife owns a 3 LR and uses all of its performance. She did the same thing with her previous car, BMW 3 series with turbo.

 

[ATPMSD]

Email from Hertz

“Enjoy charging on us when you book a Tesla Model 3 for pickup between November 1, 2021 - January 31, 2022 and charge at Tesla network chargers.* Experience a greener way to travel in the future‑focused, zero‑emissions Model 3.”

 

[BostonBurley]

Feels weird reading this thread a few days later now that we know no order has been placed.

Just bc the Model 3 isn’t a Model S, doesn’t make it a Camry. If price point is all that matters, the Model 3 is an in-ground swimming pool. 42k is a lot of money, especially when the same car was recently 38k.

 

[whitex]

Feels weird reading this thread a few days later now that we know no order has been placed.

Just bc the Model 3 isn’t a Model S, doesn’t make it a Camry. If price point is all that matters, the Model 3 is an in-ground swimming pool. 42k is a lot of money, especially when the same car was recently 38k.

Only feels weird to people new to Elon. Having bought stuff from him before (want to see my 691hp car?) I know to interpret his words in the most minimalistic interpretation. In this case he never said there was any contract, I was thinking they probably just announced an intention (non binding) or maybe put a few $100 deposits.

 

[BostonBurley]

Only feels weird to people new to Elon. Having bought stuff from him before (want to see my 691hp car?) I know to interpret his words in the most minimalistic interpretation. In this case he never said there was any contract, I was thinking they probably just announced an intention (non binding) or maybe put a few $100 deposits.

I’ve met Elon several times. My face is in “Revenge of the Electric Car”. I’ve seen Elon on DMT. I’ve taken delivery of two S and two X vehicles. That information only seems weird to people new to the sarcasm of my previous post. Elon is garbage. His fans are idiots.

 

[meomyo]

I dunno, I see a lot of women and older people in M3s, including my wife, who keeps it in chill mode. Good thing I don't drive it much or it would be dead by now. I think the powerful regen is the only reason I haven't gotten a ticket yet.
Met a friend of a friend the other day who has a Dual Motor but says he doesn't like to go fast, which is CRIMINAL. I should switch our cars and transfer the logo on the back and he might never know.

I’ve met Elon several times. My face is in “Revenge of the Electric Car”. I’ve seen Elon on DMT. I’ve taken delivery of two S and two X vehicles. That information only seems weird to people new to the sarcasm of my previous post. Elon is garbage. His fans are idiots.

i met him once with his brother whom i know and he is an odd dude. But most mega rich guys are