Report: Tesla, Hertz Negotiating Timeline of Massive Model 3 Order

Tesla’s whale of a deal with Hertz for 100,000 electric vehicles is still being negotiated, according to a report from the Wall Street Journal.

When Hertz announced the order, Tesla stock spiked. Tesla Chief Executive Elon Musk took Twitter to say that the two companies had no contract in place and that fulfilling such a large order would be a challenge.

https://twitter.com/x/status/1452727731452588041

Hertz responded by saying it has already received and is renting Tesla vehicles.

Hertz is prominently promoting the all-electric Tesla Model 3 on the homepage of its website.

“Ditch the gas pump when you go electric,” the site says. “Experience instant torque on the open road or cruise the downtown strip in style with a sleek, zero-emissions sedan. This spacious 5-seater is perfect for when you need to recharge.”

The Wall Street Journal reported that the two companies are currently trying to come to an agreement on how soon Hertz can overhaul its fleet with electric vehicles.

 

[Sojournerman1]

If the order is spread over 14 months its only 8k ish a month not a huge production problem other than for the other customers who have previously ordered their M3S which they now won't receive in due time due to this massive order. I suspect tesla will go nope we have more than enough demand you will have to wait your turn like everyone else.

 

[Mrbrock]

They will be able to get cars rejected by people I would assume. So no guarantee but they will get some earlier. If they make them get in line, then there is going to be a long window of just Hertz cars being produced and no one else unless they continue their current batch process (switching colors, trims, etc).

 

[raptor5244]

Anyone else feel like having 100,000 Hertz Model 3s rentals just cheapens the car? They are starting to lose that special feeling as these go mainstream now. You already see them all over the place. Kind of like seeing an iPhone now. Just pick a color...

 

[popgodazipa]

Anyone else feel like having 100,000 Hertz Model 3s rentals just cheapens the car? They are starting to lose that special feeling as these go mainstream now. You already see them all over the place. Kind of like seeing an iPhone now. Just pick a color...

How could you not? But I think that was the whole point of the M3. To make them ubiquitous…the Camry of Tesla’s and EVs really.

 

[Zacster]

100000 cars is not a lot really, especially if spread out over a few years.

While they are still fairly rare in NYC I am beginning to see more of them. And I still get looks from people and questions. The one answer that surprises them though if they ask is the price. An SR+ in base color costs less than the median price of a new car in the US so people buying their Hondas are frequently paying more. An SR+ is far from a luxury car and it is much better than a Camry or Accord. I've owned both.

 

[raptor5244]

An SR+ in base color costs less than the median price of a new car in the US so people buying their Hondas are frequently paying more. An SR+ is far from a luxury car and it is much better than a Camry or Accord.

While I agree the Model 3 is a great car the pricing is still quite a bit higher. The entry level SR+ is now $45k plus $1,200 destination, while a well equipped Camry is around $30k or so. Maybe once the market settles down it will return to the $40k entry price point for a Tesla but I doubt it. Prices never seem to fall all the way back to prior levels. There needs to be increased EV competition from the other manufacturers in the market, which will take another 3-5 years.

 

[Mrbrock]

While I agree the Model 3 is a great car the pricing is still quite a bit higher. The entry level SR+ is now $45k plus $1,200 destination, while a well equipped Camry is around $30k or so. Maybe once the market settles down it will return to the $40k entry price point for a Tesla but I doubt it. Prices never seem to fall all the way back to prior levels. There needs to be increased EV competition from the other manufacturers in the market, which will take another 3-5 years.

The average new car costs $45,000: What the heck is going on?

This is the sixth month in a row we've seen a record price tag on the average new car sold in America. And the prices keep increasing.

www.cnet.com

 

[raptor5244]

https://www.cnet.com/roadshow/news/average-new-car-costs-price-increase

Of course, but if we are only comparing a Model 3 to a Camry, Accord, Hyundai, Mazda, etc. there is still a significant price gap even if you include fuel savings. If you compare to a luxury brand such as Lexus, BMW, Audi it gets more interesting. I see you can get a BMW 3 series hybrid now with an electric motor option for $42-45k and you get lot more color options, interior options, wheel options, etc. I think the Model 3 is due for a refresh with improved interior and some front and rear styling updates.

 

[Zacster]

While I agree the Model 3 is a great car the pricing is still quite a bit higher. The entry level SR+ is now $45k plus $1,200 destination, while a well equipped Camry is around $30k or so. Maybe once the market settles down it will return to the $40k entry price point for a Tesla but I doubt it. Prices never seem to fall all the way back to prior levels. There needs to be increased EV competition from the other manufacturers in the market, which will take another 3-5 years.

I was lucky when I bought mine. The posted price was 37,990 but by the time of delivery the price had dropped to 36,990. I got the lower price, maybe the lowest priced Tesla ever. Yes, it is now 44,990 and I don't think the car is actually worth that price.

 

[OxBrew]

Anyone else feel like having 100,000 Hertz Model 3s rentals just cheapens the car? They are starting to lose that special feeling as these go mainstream now. You already see them all over the place. Kind of like seeing an iPhone now. Just pick a color...

No, not at all. Maybe it peels back some of the hype, and exposes it as just another car, makes it approachable for anyone? IDK, I really want the public perception that a Tesla is a piece of jewelry that owners keep in a velvet box in the shelf to change.

When we were checking out a friend's Y before we got ours, I pointed out to my wife that the dogs would easily fit in the back. Our friend said what? Dogs in a Tesla? You can't put dogs in a Tesla! Who does that??? They'll destroy it!

I am here for taking the halo off these cars.

 

[TexasTezla]

Anyone else feel like having 100,000 Hertz Model 3s rentals just cheapens the car? They are starting to lose that special feeling as these go mainstream now. You already see them all over the place. Kind of like seeing an iPhone now. Just pick a color...

Nope, the more the better as far as I am concerned! Dump ICE ASAP! People comparing these to Camrys etc are failing to grasp the significance of moving away from ICE to EV. "I can get a fully loaded Camry for less" is totally missing the point...

 

[raptor5244]

I was lucky when I bought mine. The posted price was 37,990 but by the time of delivery the price had dropped to 36,990. I got the lower price, maybe the lowest priced Tesla ever. Yes, it is now 44,990 and I don't think the car is actually worth that price.

Yeah, I bought a 2019 SR+ for $41k when they charged more for white but it still had a $3,750 tax credit so I thought $37,250 was fair price at the time when comparing to Camrys, Accords, etc. I realize prices are up and supply and demand is out of whack but after owning the car for a while the Tesla M3 interior is not nice enough to be a $45k car plus destination, tax, tag and title, which means you now looking at $50k for the entry level model now. This may help the resale value of my SR+ but I still don't think it is worth that kind of money.

I realize most of the budget of the M3 is invested in the powertrain but I think time is running out as more EV competition starts to appear. Some will argue that the Tesla performance is worth it, but all EVs will feel quick so once you level the playing field on powertrain then you are left with styling, interior, comfort, usable space, etc. This is where the competition tends to be a lot better. They will offer more trims, colors, interior color and material options, more attractive wheel packages, etc.

 

[TexasTezla]

No, not at all. Maybe it peels back some of the hype, and exposes it as just another car, makes it approachable for anyone? IDK, I really want the public perception that a Tesla is a piece of jewelry that owners keep in a velvet box in the shelf to change.

When we were checking out a friend's Y before we got ours, I pointed out to my wife that the dogs would easily fit in the back. Our friend said what? Dogs in a Tesla? You can't put dogs in a Tesla! Who does that??? They'll destroy it!

I am here for taking the halo off these cars.

Our dog travels with us everywhere in our Tesla! Why would a family member not be allowed in our car?? Doesn't make sense

 

[raptor5244]

Nope, the more the better as far as I am concerned! Dump ICE ASAP! People comparing these to Camrys etc are failing to grasp the significance of moving away from ICE to EV. "I can get a fully loaded Camry for less" is totally missing the point...

There are still so many problems to solve though before this can realistically happen though. Basically everyone who lives in an apartment complex can't charge conveniently. There are not nearly enough Superchargers available. A couple years ago 80% of the stalls were open, now you often have to wait for one to open up.

Even if you find folks who want to dump their ICE vehicle they are eliminating a huge percentage of the market with an entry model vehicle of $45k. The industry actually needs Toyota Corolla and Honda Civic EVs for $25k to making a dent.

 

[TexasTezla]

There are still so many problems to solve though before this can realistically happen though. Basically everyone who lives in an apartment complex can't charge conveniently. There are not nearly enough Superchargers available. A couple years ago 80% of the stalls were open, now you often have to wait for one to open up.

Even if you find folks who want to dump their ICE vehicle they are eliminating a huge percentage of the market with an entry model vehicle of $45k. The industry actually needs Toyota Corolla and Honda Civic EVs for $25k to making a dent.

The rumored Model 2 could answer that hopefully. And of course, sooner rather than later it will not be 'finding folks who want to dump their ICE', as they wont have a choice! As for apartment dwellers you have a point but with ubiquitous superchargers this will be moot. The pace of change is just at the beginning of the ramp up!

 

[raptor5244]

The rumored Model 2 could answer that hopefully. And of course, sooner rather than later it will not be 'finding folks who want to dump their ICE', as they wont have a choice! As for apartment dwellers you have a point but with ubiquitous superchargers this will be moot. The pace of change is just at the beginning of the ramp up!

Yep, I think a $25-30K EV is when it will really take off but we will need the charging infrastructure to support it and I think that is what will hold it back for a while.

 

[OxBrew]

Yep, I think a $25-30K EV is when it will really take off but we will need the charging infrastructure to support it and I think that is what will hold it back for a while.

If the demand is there for on street charging, someone will sell a solution. Grid infrastructure too. Stationary battery farms can offset higher elec demand without upgrading wires. Already happening, many examples of battery farms instead of new trunk lines, saving 10's or 100's of million $$$. I5 corridor from Portland OR to Olympia WA had a planned new line to support growth. Cancelled and replaced with privately built utility operated battery farms. Tesla and Panasonic? LG? (IDK) big providers (including buying/owning the land).

The infrastructure is already being built.

 

[joer00]

Of course, but if we are only comparing a Model 3 to a Camry, Accord, Hyundai, Mazda, etc. there is still a significant price gap even if you include fuel savings. If you compare to a luxury brand such as Lexus, BMW, Audi it gets more interesting. I see you can get a BMW 3 series hybrid now with an electric motor option for $42-45k and you get lot more color options, interior options, wheel options, etc. I think the Model 3 is due for a refresh with improved interior and some front and rear styling updates.

I rented a bmw 330 last year. I was shocked what a crap it is compared to a model 3. Sure its nicer build and has more options but driving and UI is horrible. One must be stupid to by that car , especially as it will depreciate horrible.

 

[popgodazipa]

Nope, the more the better as far as I am concerned! Dump ICE ASAP! People comparing these to Camrys etc are failing to grasp the significance of moving away from ICE to EV. "I can get a fully loaded Camry for less" is totally missing the point...

It’s a compliment actually …the Camry comparison. Dependable, reliable brand what’s…not to like? Good on Hertz though…I just don’t want to see any police departments buying any of the S3XY as fleets. Then I’d have to say goodbye…yeah I’m that shallow.