Hertz is dumping EVs but the decline in the price of used Teslas started long before that.
$2 Billion in Subsidies, Only 2 EV Stations Opened
On January 18, I commented $2 Billion in Subsidies, Only 2 EV Stations Opened, the Holdup is Social Justice
In yet another example of Biden incompetence, the administration is setting up rules making it harder to deliver EV charging stations.
I also stated “EVs are more expensive.” Reader Robert replied ….
I think to be fair, your analysis should also consider EVs resale value. Everything I have read indicates that EVs have extremely strong resale value, beating almost all gasoline powered vehicles except maybe Porsche.
This is the real reason Hertz is selling its used Teslas now, to sell them now when their resale value is at a premium so Hertz can plow that money back into its business.
Right?
Right? Uh … No!
The average price of a used Tesla has declined 18 months in a row, moving from a record high of $67,900 in July 2022 to a record low of $35,844 today (-47%). $TSLA pic.twitter.com/vuTK2C4oZB
— Charlie Bilello (@charliebilello) January 19, 2024
Hertz Is Selling 20,000 EVs Due to Lack of Customer Demand
On January 11, I noted Hertz Is Selling 20,000 EVs Due to Lack of Customer Demand
Hertz is selling a third of its EVs globally, with 20,000 in the US and will use some of the money to buy more Internal Combustion Engine (ICE) gasoline-powered cars.
Add that to the list of inconvenient facts.
Hertz Deals
Want a used Tesla? You can find them at Hertz Car Sales.
Hertz is selling some Tesla Model 3 for as low as about $20,000, about half the purchase price for the cheapest variant of the compact sedan.
Hertz will log a $245 million incremental net depreciation charge.
Only 6 Percent in the US want an EV for their Next Vehicle
Prices are plunging because Only 6 Percent in the US want an EV for their Next Vehicle and the damn things are stacking up on dealer lots and rental car agencies who bet on EVs made a stupid mistake.
Prices were plunging long before Hertz started dumping.
Ford Loses $36,000 on Each EV, Cuts Production of Electric Trucks
In case you missed it, please see Ford Loses $36,000 on Each EV, Cuts Production of Electric Trucks
Demand for EVs is nowhere close to projections so car makers are slashing production.
