This is exactly the point.
This is really a non-reup on Tesla as a rental fleet option.
It’s important to note that they have been renting half this fleet to Uber drivers at approximately 1/2 their consumer rental rate, according to TheVerge:
> Hertz is scaling back its EV ambitions because its Teslas keep getting damaged / Also, Uber drivers, who are using about half of Hertz’s Teslas, are damaging their cars more than Hertz expected.
And:
> repair costs are about double what the company spends on gas car fixes, Hertz CEO Stephen Scherr told Bloomberg.
Apparently they tried to pull more vehicles into the leisure category (aka consumer rentals not Uber driver rentals) to mitigate repair costs, but it didn’t work.
Also, the price cuts Tesla has been making are turning the company off on renewing:
> Price cuts have taken another toll on Hertz. “The MSRP [manufacturer suggested retail price] declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,” Scherr said.
It's a cascade of issues, but it really comes down to "people didn't want EVs when offered". For want of renters, the Uber was used. For want of Uber gentleness, the repairs mounted, etc.
I honestly can't fault them, they tried a thing and they ran into real issues.
I suspect that Tesla themselves could manage a (smaller) rental EV fleet for those who wanted them, and do decently well (they could rent out used cars they've prepped for sale).
It’s important to note that they have been renting half this fleet to Uber drivers at approximately 1/2 their consumer rental rate, according to TheVerge:
> Hertz is scaling back its EV ambitions because its Teslas keep getting damaged / Also, Uber drivers, who are using about half of Hertz’s Teslas, are damaging their cars more than Hertz expected.
And:
> repair costs are about double what the company spends on gas car fixes, Hertz CEO Stephen Scherr told Bloomberg.
Apparently they tried to pull more vehicles into the leisure category (aka consumer rentals not Uber driver rentals) to mitigate repair costs, but it didn’t work.
Also, the price cuts Tesla has been making are turning the company off on renewing:
> Price cuts have taken another toll on Hertz. “The MSRP [manufacturer suggested retail price] declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,” Scherr said.
Your analysis seems spot on.
https://www.theverge.com/2023/10/27/23934691/hertz-tesla-ube...