Tesla and Hertz and Uber’s new actions look like blockbusters

Tesla became a a multi-billion dollar company this week after the announcement of a major partnership with Hertz. The car rental company said so buy 100,000 Tesla Model 3 sedans by the end of 2022, and this sent Tesla stock price north of $ 1,000 per share. Two days later, Hertz revealed that Uber had offered to rent about half of these electric cars for its riders. Hertz though wrote Tom Brady upgrading its new ships.

This is very good for Tesla, and it is going well for all EV companies. But some of the companies involved are making risky bets. Hertz is wasting money about $ 4.2 billion Assuming that, with the lease of Tesla available next month, cars will be so expensive that its customers will pay higher prices for what the company says it will be “.premium and a variety of borrowing skills. “ Hertz says Tesla rental price will remain “the same”Depending on the cost and the high cost of the vehicle, which varies depending on the destination and the date of your reservation. For more information, rent a Jaguar XF sedan, which saves money approx similar to the new Tesla Model 3, at LaGuardia Airport in New York costs $ 300 a day ago. taxes and duties.

Currently, Uber is offering drivers a small fee as well as discounts on other stations agree to pay $ 334 a week rent Tesla from Hertz. The rental company thinks that this new rental system could lay the foundation for a better future, an environmentally friendly business, even though the company has a mixed reputation when it comes to car rental for drivers.

To understand how these companies can reach the new Tesla lending market, we looked at mathematics. Hertz’s partnership with Tesla is worth billions, while Uber could spend millions to attract drivers to rent EVs instead of cheap cars. Ideally, it should be the customers who choose whether the money will be paid to the companies involved.

Tesla is making more than just money

Tesla only makes a profit if these bets pay off. All the company has to do is get its own product out there a very large system. The cost of the contract is too high because Tesla pays for it sticker on all Models 3 – for now, Model 3 starts at $ 43,990 – although discounts on most orders are more common in car rental companies.

There’s more than just money on the table, too. Making Tesla cars available as rent and the rise of Uber will also reflect the company’s image to many potential customers. For example, Tesla notoriously has no advertising department, but is gaining more interest in Hertz’s recent advertising campaign, which features Tom Brady surrounded by Model 3s.

Hertz bets billions in the future green

More is coming up in this Hertz commercial. The car rental giant donated money to bankruptcy last year the epidemic halted the travel industry, and it just started coming back two companies investing bought a large stake in the company in March. Now, it looks like Hertz is hoping that a pivot to rent an electric car could give the century-old company a second life. Instead, Hertz plans to establish a dedicated portal renting EVs, and it is said that more than 20 percent of its ships will be electric by the end of next year.

This calculation assumes that Tesla will deliver the promised cars on time, which is unlikely. The company has done missed production goals in the past and still walking on shortage of semiconductor worldwide, which has wreaked havoc on automobile production.

Potential customers may not want to pay to rent Tesla, especially since then car rental rates are still high than it was before the plague. Once again, Tesla’s unique operating system may be enough to reimburse customers. Most people have never had the opportunity to drive an electric car, so renting can give them the opportunity to do so without spending a lot of money. more than $ 40,000 on the Model 3.

Uber’s business is to change gears

While Hertz is selling its Teslas as a luxury item, Uber rental cars will be available on all high-end units, in addition to UberX’s excellent performance. While Uber drivers with Teslas will also be worthy to register their vehicles on the top Uber Comfort Ride platform and Uber Green operating system, there will be no dedicated way for an Uber customer to reserve a ride in Tesla.

The success of the new Uber and Hertz partnership apparently depends on whether or not it satisfies operators to sign up for a rental program. Uber drivers can already rent other cars through an existing partnership with Hertz, which advertises weekly rental price $ 214 per week, excluding fees. While renting Tesla may be expensive, Uber has promised that the price will drop from $ 334 a week to $ 299 and possibly even lower. Uber also gives Tesla drivers an extra dollar on the trip (up to $ 4,000 a year), and any Uber driver with an electric car can deduct it from the EVgo power station.

“It is clear that EVs and self-driving cars are the future of the automotive industry, as well as [Uber wants] having a front seat in their great movement, ”says Gad Allon, a jobs, knowledge, and decisions professor at Wharton. “The alliance allows them to start and see the future of their model.”

However, the system has its limitations. Less than 10 percent of Uber drivers currently rent their cars, so the Hertz contract does not apply to most drivers. The company also has a long history of providing drivers with automobiles. In 2017, Uber Close his Xchange Leasing business, which provided vehicles to underprivileged drivers; the program was lost a lot of money. Xchange Leasing was also criticized drivers driving with harsh financial contracts. Some believe Uber’s recent lease agreement will also leave drivers deteriorating.

“Whether they are renting a Teslas or Toyotas, the drivers that Uber traps and car rental methods will still be subject to permanent debt,” a spokesman for Gig Workers Rising, a support group, told Recode.

But even if Hertz and Uber make money on their betting, Tesla will still be the most celebrated company. Hertz said Wednesday that if the Uber deal goes well, the company could expand the program to have 150,000 more cars for the next three years, which would require Hertz to purchase at least 50,000 Model 3 models. This, of course, is good news for Tesla.

Source link

Leave a Reply

Your email address will not be published.