Estero Florida Based Hertz Is Selling Many Of It’s Tesla Vehicles
If you’re in the market for a used Tesla, you’re in luck. Estero, Florida based Hertz is selling off nearly one third of it’s electric vehicle fleet. The plans are to use the money to buy more gasoline powered vehicles. That’s roughly 20,000 electric vehicles all for sale. Since Hertz is based here in Estero, many of these vehicles are available in Southwest Florida. After checking the listings on their website, some of these 2 year old Tesla Model 3’s can be had for $20,000 or less.
The company’s pivot back towards more gasoline powered vehicles was explained in an SEC filing earlier today. Hertz cited several issues with the Teslas, and other EV vehicles in their fleet. Consumer demand, depreciation, and damage expense related to EVs. Above all, “The Company further anticipates that incremental free cash flow generation related to this action will approximate $250 million to $300 million in the aggregate over 2024 and 2025.” So they can increase profits by reducing electric vehicles and going back to gas.
If you’re in the market for a used Tesla, keep in mind the Used Clean Vehicle Credit. This credit from the US Government equals 30% of the sale price up to a maximum credit of $4,000. The primary stipulations to this credit is that the car’s sale price is less than $25,000 and that it’s model year is 2 years or less previous. With this credit, a white 2022 Tesla Model 3 can be had from their Bonita Springs lot for $20,995. A black 2022 Tesla Model 3 in Estero for $21,200. I’ve never bought a car from Hertz, so I don’t know their ‘haggling policy.’ But maybe you can do even better.
The high cost to repair a Tesla was stated in the release from Hertz.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter, thereby supporting the Company’s decision to initiate the material reduction in the EV fleet.” Talking with Tesla owners in my neighborhood, they can verify that repair of these vehicles is quite costly. Additionally in some cases, major repairs can take a very long time to be completed.
Hertz was nearly left for dead after a bankruptcy filing back in 2020. After members of Reddit group “Wallstreetbets” moved in to save the stock (stonks only go up), Hertz was provided nearly 6 billion dollars in equity capital. The money came primarily from Knighthead Capital Management.
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