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Hertz orders 100k Teslas

bloomberg.com

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Re: Hertz orders 100k Teslas

#291

Post by jonathankoren »

stmfreak wrote: post #225
Waterluvian wrote: post #163

I was very pessimistic about Tesla and confused by their stock price. But I now believe that they indeed are doing it and that we’re finally at the EV revolution. I’m not an early adopter type and the Teslas don’t excite me at all, but I’m really delighted that the market is evolving. I’m delighted that I was wrong.

Tesla’s stock price is confusing if you compare them to a car company. But they are not just a car company. They are also a car manufacturing supply chain, having brought much of their component production in house. They are also an energy company, both generation and storage, but also distribution, like gas stations. Think Exxon, BP, Chevron, ARCO, etc. They are probably a few other things, but this is the mystery o…

Every car manufacturer is a supply chain and and owns their own component production. Ford owns Motorcraft. General Motors owns AC Delco.

Tesla doesn't have nearly the size of the distribution network of any of the oil companies.

The fact is Tesla was trading at 1000x historic earnings, and 161x future earnings, or to put it another way, 10x any other car manufacturer, and this this was before this deal. [0]

This simply doesn't make any sense.

[0] https://www.tradestation.com/insights/2021/04/08/tesla-overv...

Re: Hertz orders 100k Teslas

#292

Post by vzaliva »

I am wondering if such a big order comes with a special deal with Tesla for "rental app" or special "rental mode" in Tesla app. As a Tesla owner I would like to carry over all my personal settings and customizations to cars I rent and I would prefer to use familial Tesla app to unlock and control car.

Re: Hertz orders 100k Teslas

#293

Post by patd »

throwawaaaaay17 wrote: post #229

Tesla surges by over $100B on a $4B (revenue) deal, likely at very low margins. Memes galore.

Reports are saying Hertz paid close to MSRP so they probably have around 20% margin (as Q3 margin overall was 28%)

Makes little sense for Tesla to sell at low margin when they are supply constrained.

Re: Hertz orders 100k Teslas

#294

Post by kyruzic »

jonas21 wrote: post #282
Jensson wrote: post #251

Earlier quoted context omitted.

Investors are betting on Tesla cars getting cheap enough that average people can afford them.

It's nearly there already. The average new car in the U.S. costs $41K, and the Tesla Model 3 is $45K.

The lowest spec model 3 is 45k. No one buys the lowest spec car except rental car companies.

Re: Hertz orders 100k Teslas

#295

Post by jonathankoren »

patd wrote: post #269
stmfreak wrote: post #225

Earlier quoted context omitted.

Tesla’s stock price is confusing if you compare them to a car company. But they are not just a car company. They are also a car manufacturing supply chain, having brought much of their component production in house. They are also an energy company, both generation and storage, but also distribution, like gas stations. Think Exxon, BP, Chevron, ARCO, etc. They are probably a few other things, but this is the mystery o…

On the automotive side, they are also a worldwide dealership network, a nascent insurance company.

Name a mass market international car manufacturer that doesn't have a worldwide dealership network and an absolutely massive financial arm?

Re: Hertz orders 100k Teslas

#296

Post by collaborative »

HWR_14 wrote: post #254
nroets wrote: post #183

Earlier quoted context omitted.

Electric cars are also a good fit for rental companies for another reason: Their customers want to make a good first impression on customers, new friends and other individuals they rarely see.

I'm sure some people do, but do most people really judge each other on rental cars ? That seems, well, stupid. Frankly, I'm not sure if most customers ever even see me in my rental car.

No, people don't usually judge each other on rental cars. But they will judge a contractor for his national origin or skin color, so driving an expensive car offsets that

Sad but true in many parts of the world

Re: Hertz orders 100k Teslas

#297

Post by londons_explore »

mike_d wrote: post #275
proggy wrote: post #248

Earlier quoted context omitted.

Not to mention that if the charger is on-premise, there is no longer a personnel need to drive gas-depleted cars to an offsite refueling station. That may add up to significant labor savings.

> there is no longer a personnel need to drive gas-depleted cars to an offsite refueling station Rental car depots have their own on site gas stations. Fuel on return is one of the highest profit margins rental companies have.

This varies. Laws on safely storing fuel frequently mean Hertz doesn't want to take on the risk (a small leak tends to cost millions in fines). Instead they'll pay staff to drive cars to a nearby station, where they'll have a discount.

Re: Hertz orders 100k Teslas

#298

Post by ikerdanzel »

stmfreak wrote: post #225
Waterluvian wrote: post #163

I was very pessimistic about Tesla and confused by their stock price. But I now believe that they indeed are doing it and that we’re finally at the EV revolution. I’m not an early adopter type and the Teslas don’t excite me at all, but I’m really delighted that the market is evolving. I’m delighted that I was wrong.

Tesla’s stock price is confusing if you compare them to a car company. But they are not just a car company. They are also a car manufacturing supply chain, having brought much of their component production in house. They are also an energy company, both generation and storage, but also distribution, like gas stations. Think Exxon, BP, Chevron, ARCO, etc. They are probably a few other things, but this is the mystery o…

Tesla is as much speculative as wework. Tesla revenue absolutely can't justify the current stock price. It may turn out it can decades later but definitely not now. Would you pay current Apple price back in the 90s? Apple did turnout able to justify current pricing but no sane investors will agree to pay that price. If today Tesla disappear from earth, nothing much happens. If those oil companies you mentioned disappear, shipping and airlines will stop. Dupont too will stop. Tesla technology can be easily copied by others as you can see many car manufacturers are catching up fast. Batteries and solar are all available widely. A barrel of oil under Exxon will not be able to be cloned by BP. BP has to have their own oil rig to produce that.

Re: Hertz orders 100k Teslas

#299

Post by acchow »

jonathankoren wrote: post #295
patd wrote: post #269

Earlier quoted context omitted.

On the automotive side, they are also a worldwide dealership network, a nascent insurance company.

Name a mass market international car manufacturer that doesn't have a worldwide dealership network and an absolutely massive financial arm?

AFAIK, the major car manufacturers' dealership networks are franchises. Yes, they have massive financial arms but they are for financing the vehicles, not for insurance.

Re: Hertz orders 100k Teslas

#300

Post by [deleted] »

asdf333 wrote: post #224
legolas2412 wrote: post #206

Earlier quoted context omitted.

I certainly do not look forward to constant unloading/loading, adjusting seats and mirrors, and pairing bluetooth again every 3 hours.

superchargers are not too bad. 30 mins at a charging station while you grab food and stretch your legs is all it takes.

[deleted]
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