Just second thought about the deal:
- Firstly, I do not believe, Hertz is going to buy 100k cars next year from TSLA. It is 30% of their fleet, considering customers preference, difficulty to drive EV car first time, lack of charging infrastructure, it will just ground lot of cars in Hertz garage. Just my speculation, of course.
- Such “fleet sale” means, that TSLA will give a large discount, giving those cars effectively for free or at loss. On the other hand, it is EV, so subsidies will be collected by TSLA if delivered in EU.
- Within 12 months, those cars will be back on the market, Hertz will not keep them longer than 9-12 months, impacting volume in 2023.
- This deal is a “one off”, not being repeated next year, i.e. another reporting issue in 2023.
