Hertz "Horror Show"

[DennisD]

See post #65.

Man, do you have TDS. Lordy.

Post # 65

Trust is why contracts are written between businesses.

By snake oil salesman, what you are saying is Musk intentionally made an Order Agreement with Hertz for 100,000 cars to inflate Tesla's market cap with the intention to pull the rug out from underneath Hertz and devalue the cars with price cuts REGARDLESS of the future value of the EV market.

I stand by my statement of never trusting a crazy man to deal with like Elon Musk.

Whether the "intention" was or was not purposeful, the end result was the same. By dealing and trusting what Elon was selling, has cost Hertz (i.e. future customers) a brutal financial blow.

I hate to keep thanking you, but you just seem to tee it up quite nicely for me and I do thank you for that my friend. ?

Sponsored

 

[voxel]

Another one I'd happily give $15k for is a Polestar.

So would I but MSRP on a loaded P2 was $68-72K.

The one I rented in late 22 was $70K but was not nicer than a loaded Premium AWD ER. Used loaded ones were on sale for $45-50K in 2022. Barely any miles.

Enterprise told me nobody wanted the P2s and gave it to me for $200-ish/week. It was supposed to be a premium rental too.

 

[Mach1E]

I stand by my statement of never trusting a crazy man to deal with like Elon Musk.

Whether the "intention" was or was not purposeful, the end result was the same. By dealing and trusting what Elon was selling, has cost Hertz (i.e. future customers) a brutal financial blow.

I hate to keep thanking you, but you just seem to tee it up quite nicely for me and I do thank you for that my friend. ?

I wouldn’t go as far to say he did this on purpose and premeditated

But he did do this.

He also has a very strong history of making wild promises and not delivering on those promises.

That train’s any rational person to not trust him when he says something.

 

[Thunderbuck]

I wouldn’t go as far to say he did this on purpose and premeditated

But he did do this.

He also has a very strong history of making wild promises and not delivering on those promises.

That train’s any rational person to not trust him when he says something.

I don't think Elon wanted to harm anyone except maybe a competitor or two, but his intent doesn't much matter. The point is he clearly didn't consider potential consequences.

 

[voxel]

I don't think Elon wanted to harm anyone except maybe a competitor or two, but his intent doesn't much matter. The point is he clearly didn't consider potential consequences.

I don't think what Tesla did was destructive because like I said in the previous post... market forces were ALREADY pushing prices down. MMR in July/August of 2022 for Teslas had peaked and Model Ys were around $50K by Nov/Dec of 2022.

Tesla is just more nimble and cut prices immediately in Jan of 2023 to reflect reality.

Right now.. Broncos are discounted like crazy and have declined YoY 30% in sales. Jeep cut prices on the Wrangler + GC and dealers are ADVERTISING 25% off Gladiator. I argue Tundras and Highlander probably need a price cut too. Many gas vehicles with MSRP hikes in 2021/2022 need price drops badly.

 

[Mach1E]

I don't think what Tesla did was destructive because like I said in the previous post... market forces were ALREADY pushing prices down. MMR in July/August of 2022 for Teslas had peaked and Model Ys were around $50K by Nov/Dec of 2022.

Tesla is just more nimble and cut prices immediately in Jan of 2023 to reflect reality.

Right now.. Broncos are discounted like crazy and have declined YoY 30% in sales. Jeep cut prices on the Wrangler + GC and dealers are ADVERTISING 25% off Gladiator. I argue Tundras and Highlander probably need a price cut too. Many gas vehicles with MSRP hikes in 2021/2022 need price drops badly.

But officer, the house was already on fire when I poured gasoline on it! ?

 

[voxel]

But officer, the house was already on fire when I poured gasoline on it! ?

Right. Tesla doesn't have dealers and can't just have 24K Mach-Es sitting around on lots like Ford did.

Nissan dealers are turning down allocations/cars because their lots are full.

https://www.autonews.com/retail/nissan-turns-back-rental-fleets-retail-stumbles
https://www.autonews.com/dealers/nissan-offers-some-dealers-cash-accept-cars

Consumers are still buying value cars (even $60K Grand Highlanders) and shunning toys and less practical cars (cough luxury sedans and expensive EVs).

Somebody will lose buckets of money on the unsold new "non-value" cars on the lots these days. Either dealers or the manufacturer. My bet is dealers will cry they can't sell the high margin trucks/SUVs and manufacturers will throw huge incentives in Q4.

 

[mkhuffman]

I don't think what Tesla did was destructive because like I said in the previous post... market forces were ALREADY pushing prices down. MMR in July/August of 2022 for Teslas had peaked and Model Ys were around $50K by Nov/Dec of 2022.

Tesla is just more nimble and cut prices immediately in Jan of 2023 to reflect reality.

Right now.. Broncos are discounted like crazy and have declined YoY 30% in sales. Jeep cut prices on the Wrangler + GC and dealers are ADVERTISING 25% off Gladiator. I argue Tundras and Highlander probably need a price cut too. Many gas vehicles with MSRP hikes in 2021/2022 need price drops badly.

Exactly. Tesla is lowering prices to stay competitive, to keep their sales up, and to keep from needing to cut shifts and lay off workers. So horrible.

When a car dealer cuts prices to make a sale, nobody complains. And now there is a chorus of complaints about Tesla doing it. It isn't rational, but I guess some people hate the man that runs the company so much, they complain when prices go down. Crazy.

I am not happy that my car is worth a fraction of what I paid, but the 8 month old Grand Cherokee I purchased for my wife was massively cheaper than it was new. I am sure the dealer who sold it to me wanted to make more, but the market is going down.

And it isn't Tesla's fault. If you want to blame someone, blame the politicians who are driving up inflation.

 

[BMT1071]

Right. Tesla doesn't have dealers and can't just have 24K Mach-Es sitting around on lots like Ford did.

Nissan dealers are turning down allocations/cars because their lots are full.

https://www.autonews.com/retail/nissan-turns-back-rental-fleets-retail-stumbles
https://www.autonews.com/dealers/nissan-offers-some-dealers-cash-accept-cars

Consumers are still buying value cars (even $60K Grand Highlanders) and shunning toys and less practical cars (cough luxury sedans and expensive EVs).

Somebody will lose buckets of money on the unsold new "non-value" cars on the lots these days. Either dealers or the manufacturer. My bet is dealers will cry they can't sell the high margin trucks/SUVs and manufacturers will throw huge incentives in Q4.

I'm currently in talks with a dealer about a new GTPE that I definitely don't need but would like to have. Hopefully they'll blink before the 0% for 72 expires and I'll have a new car. ?

 

[Mach1E]

Exactly. Tesla is lowering prices to stay competitive, to keep their sales up, and to keep from needing to cut shifts and lay off workers. So horrible.

When a car dealer cuts prices to make a sale, nobody complains. And now there is a chorus of complaints about Tesla doing it. It isn't rational, but I guess some people hate the man that runs the company so much, they complain when prices go down. Crazy.

I am not happy that my car is worth a fraction of what I paid, but the 8 month old Grand Cherokee I purchased for my wife was massively cheaper than it was new. I am sure the dealer who sold it to me wanted to make more, but the market is going down.

And it isn't Tesla's fault. If you want to blame someone, blame the politicians who are driving up inflation.

It’s not all good nor is it all bad.

But it does negatively affect anyone who bought an EV in the last few years (like us), so that’s why we don’t like it.

It seems pretty reasonable to not like an action that hurts you financially.

The difference when Tesla cuts prices $20-50k is they own HALF of the BEV market. They can and did change the entire market.

So yeah, my car tanked in value and there was 1 person who was the biggest factor in this drop and it was Elon.

Inflation would have the opposite effect…….. that would be a reason to complain prices went up.

 

[azerik]

And it isn't Tesla's fault. If you want to blame someone, blame the politicians who are driving up inflation.

I actually can't remember the last time I didn't hear "inflation busting weekend" on the radio.

I'm currently in talks with a dealer about a new GTPE that I definitely don't need but would like to have. Hopefully they'll blink before the 0% for 72 expires and I'll have a new car. ?

Had the plant the seed in my mind again huh.. damn it.
I will not, I should not. Nope, not gonna look.

 

[DennisD]

You have TDS without needing anyone's help. No worries.

Not sure on what you mean by "TDS"?

Please explain.

 

[mkhuffman]

Not sure on what you mean by "TDS"?

Please explain.

Totally Deserving Savant

 

[mkhuffman]

Inflation would have the opposite effect…….. that would be a reason to complain prices went up.

Inflation is increasing the cost of groceries and other necessary goods and services, leaving people with less disposable income and less money to buy a car. Not only that, inflation is driving up interest rates which makes it harder for people to afford a new car loan. So car sales are going down, and lowering the price of a new Tesla will mean more people can afford to buy one. So inflation is directly responsible for Tesla lowering the price of their vehicles.

 

[mkhuffman]

Inflation would have the opposite effect…….. that would be a reason to complain prices went up.

Inflation is increasing the cost of groceries and other necessary goods and services, leaving people with less disposable income and less money to buy a car. Not only that, inflation is driving up interest rates which makes it harder for people to afford a new car loan. So car sales are going down, and lowering the price of a new Teala will mean more people can afford to buy one. So inflation is directly responsible for Tesla lowering the price of their vehicles.

Sponsored