Tesla became one Trillion-dollar company this week After the announcement of a huge deal with Hertz. The rental car company said it would Buy 100,000 Tesla Model 3 sedans Towards the end of 2022, and it sent Tesla The stock price answers $ 1,000 a share. Two days later, Hertz revealed that Uber had promised to hire Like half of this electric car To its ride-share drivers. Hertz even Hiring Tom Brady To promote his new fleet.
These developments are obviously good for Tesla, and they are good for the EV industry as a whole. But other companies involved are making risky bets. Hertz is making a cost An estimated $ 4.2 billion Under the assumption that when its Tesla rental becomes available next month, cars will be so desirable that its customers will have to pay higher rates for what the company says. “Premium and separate rental experience. “ Hertz Says Tesla will cost rent “Similar”Rates for premium and luxury vehicles, which vary based on pick-up location and storage date. For reference, rent a Jaguar XF sedan, which costs Roughly Like a new Tesla Model 3, it costs more than $ 300 a day at New York’s Lagarde Airport Taxes and prices.
Meanwhile, Uber is offering drivers a small subsidy and discounts on certain charging stations Agreed to pay $ 334 per week Hire Tesla from Hertz. Ride-Share Company thinks this new rental system could lay the groundwork for the future, a more environmentally conscious business model, although the company has a mixed record in leasing cars to drivers.
To understand how each of these companies will approach the new Tesla rental market, we looked at the math. Hertz’s deal with Tesla is worth billions, while Uber could spend millions on benefits to persuade drivers to rent EVs instead of less expensive vehicles. Of course, customers will decide whether these investments will pay off for the company concerned.
Tesla is making more than money
Tesla only stands to gain if these bets pay off. All the company has to do is produce it The largest order. The contract price is particularly high because Tesla is charging Sticker price In all model 3 – currently, a model 3 Starting at $ 43,990 – Although discounts on bulk orders are more common Car rental industry.
There is more to the table than just money. Making Tesla vehicles widely available for rent and for Uber rides will introduce the company’s brand to many more potential customers. For example, Tesla Famously there is not a marketing department, But it’s getting a lot of attention in Hertz’s recent commercials, which show Tom Brady surrounded by Model 3s.
Hertz is betting billions for a green future
The deal for Hertz is mounting more. The car rental giant filed for bankruptcy last year The epidemic has pushed the travel industry away, And it only starts to bounce back when Two investment firms In March the company bought a majority stake. Now, it looks like Hertz is hoping that a pivot of electric vehicle rental could give the century-old company a second life. In fact, Hertz plans to launch one Dedicated portal EV for rent, and says more than 20 percent of its fleet will be electric by the end of next year.
These calculations assume that Tesla will deliver the promised vehicles on time, which may not be the case. There are companies Miss production targets The past and still are navigated Global semiconductor shortage, Which has destroyed automated production.
Potential customers will not want to pay a markup for renting a Tesla, especially since Rental car prices are still high They were before the epidemic. Then again, the novelty of running Tesla may be enough to reel customers. Many people do not have the opportunity to drive an electric car, so the rental experience can give them an initial opportunity to do so without costing them too much. More than 40,000 on a Model 3.
Uber’s business model is changing gears
While Hertz is marketing its Teslas as a premium product, the vehicles rented at Uber will be available on all levels of rides, including the budget-friendly UberX service. Uber drivers will also be with Tesla Eligible There will be no dedicated way for an Uber customer to book a ride on Tesla, to list their vehicles at the platform’s high-end Uber Comfort Ride and environmentally centered Uber Green service levels.
The success of Uber’s new deal with Hertz clearly depends on whether it can persuade drivers to sign up for a rental program. Uber drivers can rent other cars through an existing partnership with Hertz, which advertises Weekly rental base rate $ 214 per week, excluding fees. Although renting Tesla will be more expensive, Uber promises that the cost will eventually be from the current $ 334 to $ 299 per week and possibly even lower. Uber is offering Tesla drivers extra dollars (up to $ 4,000 per year) per trip, and any Uber driver, including electric vehicles, can get discounts at Evigo electric car charging stations.
“It is clear that EVs and self-driving cars are the future of the automotive industry, and [Uber wants] They need to have front seats for their impact on large-scale mobility, ”said Gad Allen, one Operations, information, and decisions Professor at Wharton. “This collaboration allows them to start and imagine the future of the model.”
Nevertheless, there are limits to this plan. Less than 10 percent of Uber drivers currently rent their vehicles, so the Hertz deal does not affect most drivers. The company also has a sketchy history of delivering car drivers. In 2017, Uber Off Its exchange leasing business, which provides cars to drivers who have not found other financing; The program was lost Too much money. The exchange was also criticized for leasing Saddling drivers with objectionable financial contracts. Some believe Uber’s latest fare cooperation will make drivers worse.
“Whether they hire a Tesla or Toyota, drivers who have been trapped by Uber’s car rental schemes will still be stuck in a never-ending cycle of debt,” Gig Workers Rising, a spokesman for an advocacy group, told Rekod.
But even if Hertz and Uber have cash in their bets, Tesla will still be the company to celebrate the most. Hertz said Wednesday that if the Uber partnership is successful, the company could expand the program to include 150,000 vehicles. The next three years, For which Hertz will have to buy at least 50,000 more Model 3s This is definitely great news for Tesla.