Thanks for your input. This is yet another example of how you and others that think this way continue to be baffled with Tesla. It’s almost a syndrome.

1.       You may not believe it but it did happen. They did order 100,000 M3. And they say it’s “just a start”. It’s not 30% of their fleet, very easy to drive a Tesla and it’s a great experience! Hertz will have fewer repairs and far less maintenance. They have already started taking deliveries.

https://www.cnbc.com/2021/10/25/tesla-hertz-ev-deal-signal-to-rental-car-fleets-its-time-for-electric.html

2.       Tesla will not discount but so what if they did. Unfortunately it was just confirmed there was not discount. They can’t build them fast enough.

https://electrek.co/2021/10/26/elon-musk-confirms-tesla-hertz-discount-questions-tsla-surge/

They have great margins and a huge production coming with Berlin and Texas very soon. Subsidies are a typical tool for government to make an industry change. Almost all EV are built with subsidies and All OEMs are getting the same subsidies so this is not unique to Tesla. And despite what you might think about profitability you may want to read last quarter financials.  

3.       They will keep them for a longer period than ICE inventory but when Hertz does sell them they will have a higher resale value than any other car.

4.       The deal is just a start not only for Hertz but other rental companies.

Pavel - You’ve been incorrect about Tesla for so long. I’m sure this will continue. Life is better on the other side. It’s a very profitable side too.

I’ll say it again. LAC investors benefit greatly from this EV and power storage push. Tesla has and continues to greatly impact the demand on lithium as they are the largest consumer of lithium.