Car Rental Business Is More Attractive, Hertz Orders 100 Thousand Units Of Tesla Model 3

JAKARTA— Tesla car rental is likely to become more popular and dramatically more discoverable when Hertz takes delivery of 100,000 Tesla Model 3 vehicles. Tesla is, of course, very popular in the news but its vehicles remain out of reach for many drivers.

As a car rental agency, even at premium rates, the opportunity to test out the Model 3 for a day or over the weekend can be very tempting.

Tesla has always had plans to produce low-cost electric vehicles. Starting with the original Roadster sports car, then the Model S luxury sedan, and the Model X premium utility vehicle, Tesla used the profits to pay for the production of the first Model 3. It was planned to sell for $35,000, and it did so for a short period of time.

The pandemic and parts shortages have led to price increases and the Model 3 now starts at over 40,000 (Rp 565 million). To make matters worse, Tesla crossed the 200,000-vehicle threshold and the order was no longer eligible for the $7,500 federal tax credit.

Hertz recently announced a major investment in electric vehicles, and placed an initial order for 100,000 cars from Tesla by the end of 2022. The company is also investing in EV charging infrastructure around the world.

Currently, Hertz's supply of Model 3 vehicles is quite limited and difficult to order. With the addition of another 100,000 Model 3s, their availability will increase rapidly, although it may still be an expensive rental. Bloomberg reports that this is an investment of US$4.2 billion (Rp 59 trillion) by Hertz.

Hertz bought 100,000 Tesla Model 3s, probably at retail prices if Bloomberg's sources are right, which is a bit surprising since such large orders usually benefit from deep discounts.

Another possibility is that Hertz put a large number of Model 3 remotes and performances on order. It could also mean that Tesla is providing assistance with the charging infrastructure Hertz mentioned in its press release or including a service agreement. Whatever the case, Hertz made a big investment and this is likely to be reflected in the rental price.

According to Bloomberg, the order is equivalent to about a tenth of the total number of vehicles Tesla can currently produce in a year. Because of this, an order of 100,000 will likely take some time to be fulfilled given that customer orders will still be delivered throughout the year.

While Hertz mentions that part of its new Model 3 fleet will arrive in early November, availability is likely to remain tight in the near future. However, by the end of 2022, renting a Tesla Model 3 from Hertz will finally become a lot easier.