Hertz Selling Off Teslas as It Reduces Its EV Fleet and the Implications on the Market

Hertz Reducing EVs in Fleet

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Hertz Global Holdings, a major player in the vehicle rental industry, recently announced a significant change in its electric vehicle strategy. The company is selling about 20,000 EVs, including a substantial number of Teslas, from its U.S. fleet. This decision, made just two years after their initial partnership with Tesla, signifies a notable pivot in Hertz's approach to electric mobility and has implications for the broader EV market, particularly for Tesla.

The move by Hertz is believed to be a response to a cooling demand in the electric vehicle sector. It's a trend that is not isolated to Hertz but resonates across the industry. Automakers such as General Motors and Ford are revising their EV production plans due to this slowdown in sales growth. However, before the UAW saw the big three give major wage hikes, EVs were ramping up across the automotive sector.

Financial Impact and Market Perception of Tesla

The decision by Hertz to reduce its Tesla fleet has significant financial implications. Firstly, thousands of used Teslas are flooding the market, driving down the resale value. Second, since the announcement, Tesla’s stock has been declining.

The factors influencing Hertz's decision to sell off its Tesla fleet indicate the broader challenges the EV industry faces. The company claims that higher expenses related to collisions and damages for EVs have been a significant concern. This issue has led Hertz to shift its focus away from its initial goal of electrifying a substantial portion of its fleet. How this affects Tesla’s rumored in-house Rental Program is anyone’s guess at this point.

Tesla doesn’t do much advertising, but Hertz certainly does. The Hertz advertising campaign featured 7-time Super Bowl Champion Tom Brady behind the wheel of a Model 3. When the G.O.A.T endorses a brand, millions listen. However, this was not utilized as part of what could’ve been a parallel marketing campaign by Tesla.

Brady was even quoted as saying: “I've been driving an EV for years, and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious.”

Tom Brady in a Model 3

Not a Tesla App

The Future of Tesla in the EV Landscape

The recent move by Hertz to sell a large portion of its electric fleet, particularly Teslas, signals a complex period for the EV market. It raises questions about Hertz’ transition to electric and the role of companies like Tesla in shaping its future. Tesla is the sector's pioneer and has been at the forefront of the EV industry, pushing boundaries with its innovative technology and design. However, as some manufacturers mysteriously shift away from electric (right after the big three settled labor strife), Tesla will continue to navigate these changes while maintaining its leadership position.

One of the significant challenges for Tesla in this evolving market is balancing innovation with operational and financial sustainability. The company needs to address the concerns highlighted by Hertz's decision, such as the higher costs associated with EV maintenance and repairs. Additionally, Tesla must continue to innovate in areas like battery technology, charging infrastructure, and autonomous driving to stay ahead of the competition.

Tesla's Role in a Changing EV Ecosystem

The perceived cooling demand for EVs also allows Tesla to reassess its market strategy. This could involve exploring new segments, enhancing customer engagement, and further improving the affordability and accessibility of its vehicles. Tesla's response to these market dynamics will be crucial in defining its future trajectory in the EV industry.

Tesla's influence extends beyond just manufacturing electric vehicles; it plays a significant role in shaping the EV ecosystem. For instance, the company's advancements in battery technology have implications for energy storage and renewable energy integration. Tesla's impact on the automotive industry has also single-handedly pushed other manufacturers to accelerate their transition to electric mobility.

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Tesla Says 12V Power Socket Access Will Not Return With Sentry Mode

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It turns out that the big undocumented change in Tesla update 2024.32 that disables the 12V power and USB ports while Sentry Mode is active is not a bug but an intentional change.

A fan contacted Tesla Service to see if the change was intentional and what the reason behind the change was. Surprisingly, they received a response pretty quickly.

No 12V Power Access

Tesla has decided to restrict 12V power access for safety reasons—namely, to “reduce the likelihood of thermal events” when third-party devices are left powered on without users present. Tesla reached out to the fan in question by phone, and they seemed to be sticking to that line.

It seems that Tesla is resolute that it was due to safety reasons and that the change would not be “fixed” or allowed in a future software update – as this was an intentional change for safety reasons.

Other sources have reported that the change was due to potential misuse of the 12V power access, with people wiring 1200w microwaves and kettles or jury-rigging 240v to 120v adapters, which had apparently been the cause of multiple fires in Tesla vehicles within China.

Workarounds

There are a couple workarounds, although neither are ideal. You can tap in to the vehicle’s 12v line directly to power your accessories, or you can use Camp Mode.

If you choose to enable Camp Mode, then you’ll need to manually lock the car from the app since walk-away door locking is disabled with Camp Mode. However, Camp Mode will use extra energy to keep the climate system enabled.

We’re still hoping Tesla considers bringing the Cybertruck’s Power Control menu to the rest of its vehicles and is somehow able to limit the max draw from these outlets to prevent dangerous situations.

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Join Our Tesla Robotaxi Event Prediction Contest

Tesla

With the Robotaxi event just a day away, we thought it would be a fun idea to run a contest to predict what Tesla will announce tomorrow evening.

We’ve outlined a list of questions below; simply answer them on our forums or social media (X or Threads), and be entered for a chance to win some great prizes.

The individuals who have the most correct answers will win one of five prizes mentioned below. If more than five people get them all right, a random drawing will be held from the pool of winners.

We’ll reach out to the winners either by email or by DM on social media.

The Questions

1. Will Tesla let attendees experience Robotaxi at the event?

2. Will Tesla first start the network with human supervision (ridesharing), or with Robotaxis only?

3. What year will the network start? When will it become fully autonomous? (if announced)

4. When will Robotaxi production begin? (if announced)

5. Will it be Robotaxi or Cybercab?

6. Which of these Robotaxi Concepts will be the closest to the one announced?

7. Will Robotaxi include:

   1. Front-facing camera?

   2. Stainless-steel body?

   3. Steer-by-Wire or No Steering Wheel? (if announced)

   4. Which current Tesla model has the most similar door-opening mechanism?

   5. How many seats will the robotaxi have?

8. Will the robotaxi include AI5/Hardware 5, HW4 or something completely different?

9. Where will Tesla’s first Rideshare/Robotaxi location be established?

10. Will customers be able to purchase a Robotaxi?

Requirements

Please use the template below to answer the questions on social media or in our forums. You can post your answer as a comment to our forums, to our X post, or to our Threads post.

Once you do that, repost or quote post your favorite article from us.

1. Yes

2. Ridesharing

3. 2025/2027

4. 2025

5. Cybercab

6. Dominic's

7. Yes, Yes, SBW, No, 2

8. HW5

9. LA

10. Yes

Prizes

Prizes are generously provided by Enhance and Jowua, makers of some of the best Tesla accessories and amazing Tesla community members. Prizes will be mailed out directly by them. Winners will get to choose their prize from the list below. First place will have the first pick and so on. There will be five winners in total.

• S3XY Buttons (including a commander and wiring)

• S3XY Knob for Model 3/Y

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

Disclaimer

This is a Tesla event, and Tesla normally likes to hold their cards close to their chest. If an answer is ambiguous, we’ll go with the best choice decided by our staff. We’ll do our best to be fair. This

With all that said, we wish our entrants the best of luck, and we’ll announce the winners at the end of the week.

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