How Hertz’s bet on Teslas went sideways

Original Article ↗ Hacker News Discussion ↗

Hertz’s EV Strategy and Financial Missteps

  • Many see Hertz’s Tesla push as a classic finance‑driven bet: buying EVs at peak prices, assuming strong residual values and “EV premium” rentals.
  • Tesla price cuts and rapid EV tech evolution blew up depreciation assumptions, breaking the core rental model (earn more than you lose before resale).
  • Some argue this was foreseeable; others say the magnitude and speed of Tesla’s cuts were unprecedented.
  • A few call it “pump‑and‑dump–style” thinking; others frame it as ordinary but poor execution, not intentional grift.

Charging Infrastructure & Rental Use-Case Mismatch

  • Strong consensus that charging is a major barrier for rentals, even if not the only problem.
  • Travelers often lack hotel chargers, don’t know local networks, and don’t want to plan around 20–60 minute charging stops before flights or meetings.
  • Complaints about fragmented non‑Tesla charging: many apps, regional accounts, broken hardware, no card readers, issues for foreigners.
  • Tesla Superchargers are widely praised for simplicity and routing integration, but coverage still varies by region and airport setups; some Hertz locations had no adequate on‑site charging.

Tesla Reliability, Repairs, and Depreciation

  • Mixed claims on reliability: some owners report zero maintenance; others cite data and anecdotes of frequent issues and poor build quality.
  • Repairs and parts for Teslas seen as slow and expensive; collision damage can sideline cars for long periods.
  • Fleet economics hurt by high repair downtime plus sudden resale-value drops after Tesla price cuts.

Renter UX: Learning Curve and Stress

  • Many describe first‑time Tesla/EV rentals as confusing: unlocking, starting, wipers, regen, charging standards, in-car UI.
  • Reports that Hertz provided little or inconsistent onboarding; some got only a key card and no explanation.
  • Some drivers loved the experience and later bought EVs; others found the learning curve and range anxiety unacceptable while on tight travel schedules.

Rental Company Practices & Customer Trust

  • Hertz criticized for:
    • Requiring high state of charge on return in some locations.
    • Lacking chargers at depots, forcing staff to drive cars out to charge.
    • Past scandals (false theft reports, aggressive damage/fee practices), making customers wary.
  • Some note EVs undermine a profit center: fuel gouging on under‑filled ICE returns.

Broader EV vs ICE Debate

  • Thread splits between EV enthusiasts (especially with home charging) and renters who say EVs are fine at home but wrong tool for most rental scenarios today.
  • PHEVs proposed as a better transitional option.
  • Broader angst about US charging rollout, regulation, and “we can’t build things anymore,” versus optimism that infrastructure and hotel charging will catch up.