Expect more cheap Tesla vehicles from Hertz as the selloff continues

Hertz says that it will continue to sell Tesla vehicles and other EVs in masse through 2025 as it is hit by massive depreciation.

In 2021, Hertz made a major move to electrify its fleet, ordering 100,000 Tesla Model 3s and later adding Model Ys. This Tesla fleet boosted Hertz’s customer satisfaction, but issues soon arose when Tesla cut prices on the Model 3 and Model Y in 2022 and 2023, sharply reducing resale values.

This hit Hertz hard, as it relies on fleet value for its financial health. While the Model 3 held up to 90% of its value within three years as of 2020, recent declines saw nearly 50% of that value erased, with Model Y values dropping even more. To mitigate losses, Hertz announced plans to sell about 20,000 Teslas early this year.

While Hertz’s Tesla purchase was its largest, the company also added other EVs from Polestar and GM to its fleet.

Now, during the release of its latest earnings this week, Hertz says that it aims to sell 30,000 EVs this year and continue selling through 2025 (via Bloomberg):

Hertz has said it plans to sell 30,000 EVs by the end of this year and get to a number that its customers wanted to rent. The company on Tuesday said it’s on pace to finish its broader fleet changeover effort by the end of 2025.

The car rental company reports that its depreciation is up 89% to $537 per vehicle per month.

You can go on Hertz’s website right now and buy Tesla Model 3 vehicles for less than $25,000.

This massive selloff will likely continue putting pressure on prices into next year and before the expected large surge of used EVs coming from lease return in 2026.

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