Hertz is scaling back its EV ambitions because its Teslas keep getting damaged
Hertz’s pullback from its electric vehicle rollout, particularly its large Tesla fleet, is attributed to unexpectedly high damage and repair costs, especially when cars are used intensively by Uber and other rideshare drivers. Commenters point to expensive, sensor-laden parts, long waits for Tesla repairs, and sharp resale value drops after Tesla’s price cuts as key factors undermining Hertz’s cost-per-mile assumptions. The exchange also highlights broader issues with EV rentals, from inconsistent charging infrastructure and customer experience problems to how rental companies price risk, maintenance, and depreciation.
Rental Car Abuse, Maintenance, and Risk Pricing
- Many note renters and rideshare drivers have weak incentives to treat vehicles gently; wear and tear is “priced in” to rental rates.
- Routine maintenance on rentals is relatively easy to enforce via schedules and onboard computers, although some argue companies may still stretch or skip intervals.
- Long digression on oil-change intervals: some insist on at least annual changes even with low mileage; others cite modern manuals specifying 2–3 year or 30k km intervals except for “severe use.”
Rideshare vs Traditional Rental Usage
- Core point from the article: Hertz’s large use of Teslas for rideshare dramatically increased utilization and damage beyond normal rental levels.
- Commenters stress that Ubers see harsher conditions: worst roads, bad weather, constant city driving, and high daily mileage, “driving cars into the ground.”
Tesla Repairability, Parts, and Costs
- Multiple anecdotes describe long waits (months) for body parts or bumpers and high repair bills for relatively small incidents.
- Windshield replacement is repeatedly cited as expensive, especially with integrated sensors and calibration; some say only Tesla or select shops can do certain glass.
- Some argue Tesla has optimized for manufacturing, not repair; limited third‑party repair and parts access keeps downtime and costs high.
Hertz’s Tesla Bet and Financial Assumptions
- Several question how Hertz misjudged repair costs and wear, suggesting poor due diligence or executive “headline chasing” rather than analysis.
- The timing was bad: Hertz bought many Teslas near peak prices, then suffered when Tesla slashed prices, increasing depreciation and hurting the resale-centered rental business model.
EV Rental Experience and Charging
- Experiences diverge:
- Some found Tesla road trips manageable via Superchargers and integrated navigation.
- Others describe EV rentals (Tesla and non‑Tesla) as stressful: broken chargers, poor apps, range anxiety, and high charging costs—sometimes exceeding fuel costs.
- Surprise EV upgrades when an ICE was reserved are viewed very negatively.
Insurance and Incentives
- High Tesla repair costs are believed to push up insurance premiums.
- Debate over whether at‑fault insurers should cover full repair costs for very expensive cars or only up to a “median” vehicle, with concerns about fairness and incentives on both sides.