Good news: Hertz has determined that gas cars cost 50% to 60% more in maintenance than Tesla EVs.
Hertz made a deal back in 2021 to purchase 100,000 of the Tesla Model 3 and Tesla Model Y
“We focused on operational excellence and fleet optimization to produce financial results that facilitated investment in our strategic priorities, like electrification, while enhancing returns to our shareholders and being in the service of our customers,” Hertz CEO Stephen Scherr said.”
Now that Hertz has seen at least a 50% decrease in maintenance cost from the Tesla deal, they are going all in on electric vehicles and have targeted roughly a quarter of the fleet to be EV by the end of 2024, Scherr said.
In addition to much better margins from reduced operational cost, Hertz is in great position to reduce the overall cost of the deal made with Tesla because of the $7,500 per electric vehicle tax credit that comes from the Inflation Reduction Act of 2022.
More huge Rental Car deals will equates to Tesla stock going up, and up
Based on the 2021 deal made with Hertz to purchase $4.2 billion on the Tesla cars, Bloomberg News reported that the announcement pushed Tesla shares up more than 12% and added almost $118 billion to the company’s market capitalization.
Because of the obvious operational optimization that EV's provide, and the tax credits from the Inflation Reduction Act, you will see more rental car companies cutting deals with Tesla as well. This will lead to additional increases in the Tesla share price with each new big rental car deal headline.
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