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Hertz CEO shares insights on Tesla rental demand: “Very, very solid”

Tesla Model 3 at Hertz (Credit: Hertz)

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It appears that Hertz’s bet on electric vehicles like Teslas is paying off. During a recent interview, Hertz CEO Stephen Scherr highlighted that the all-electric vehicles in the company’s fleet of rental cars are seeing a lot of demand.

Hertz made headlines almost a year ago when the American car rental giant placed an order for 100,000 Teslas as part of its efforts to transform its fleet into sustainable vehicles. In more recent announcements, Hertz also ordered EVs from other carmakers such as Polestar and General Motors. 

In a recent segment on Yahoo Finance, the Hertz CEO was asked if the company’s Tesla fleet was attracting interest among clients. Scherr did not skip a beat when he responded that the demand for Hertz’ Teslas is very healthy. The CEO explained that Hertz’s Teslas are not only being rented by travelers and ride-haling drivers — some are being used by corporate travelers who work for companies that are looking to lower their carbon footprint. 

“Demand has been very, very solid. And remember, we’re seeing demand not only among leisure travelers but also corporate travelers, where in fact, corporations want their employees in an electric vehicle to satisfy some of their carbon footprint objectives. And of course, we’ve been renting to Uber and Lyft as part of their ride-sharing network. Demand across all three has been very strong,” the CEO said. 

Hertz is looking to have 25% of its fleet be electric vehicles by the end of 2024. So far, only about 5% of the company’s rental fleet is electric. Despite this, the momentum for EVs seems strong for the car rental giant, especially as Hertz has been seeing some substantial savings in the maintenance of its electric vehicles. 

“I’d also point out from a financial point of view. For Hertz, the maintenance is appreciably lower on (the) electric vehicles. We’re seeing it 40-50% lower, just given the nature of the car itself,” Scherr said. 

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The Hertz CEO also addressed the potential issue of range anxiety for customers, stating that the company is actively looking to secure charging support for its electric car fleet. On Tuesday alone, Hertz announced an EV charging deal with BP, with the company planning on having support for thousands of charging stations across the country by the end of 2023. Of course, the company’s Tesla fleet is already supported by the Supercharger Network, which is arguably the best rapid charging network for electric cars in the United States. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Cybertruck

Tesla upfitter offers to keep Cybertruck alive

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Credit: Unplugged Performance

A Tesla upfitter has offered to take over Cybertruck lines from the company in a last-ditch effort to save the all-electric pickup from being completely canceled in the middle of 2027.

Unplugged Performance, the Hawthorne, California-based Tesla aftermarket specialist, has publicly offered to take over Cybertruck production from Tesla, funding the effort “through a consortium of investors.”

The proposal comes as Tesla prioritizes its Cybercab Robotaxi program and prepares to wind down Cybertruck assembly at Gigafactory Texas around mid-2027.

Founded in 2013 by Ben Schaffer and located adjacent to Tesla’s Design Studio and SpaceX, Unplugged Performance has become a leading provider of premium upgrades for Tesla vehicles, including extensive Cybertruck packages under its UP INVINCIBLE line.

Through its UP.FIT division, the company has also developed purpose-built police and fleet versions of the Cybertruck, including deliveries to agencies such as the Las Vegas Metropolitan Police Department.

In an X post on Tuesday, Unplugged said:

“An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands. We’d fund it with a consortium of investors and run it at no cost to Tesla’s floor space, headcount, or focus. All of that goes to Cybercab. Cybercab gets first call on battery cells too. We’ll wait our turn. Tesla gains incremental profit: a license fee, plus FSD and Robotaxi network revenues on every vehicle built. We’d build the Cybertruck, a three-row CyberSUV, and an unmanned CyberCargo hauler. More autonomous miles, across every surface of this planet and beyond. Worth a conversation?”

The arrangement would free Tesla resources and manufacturing capacity for Cybercab while allowing continued production of the stainless-steel pickup and expanded variants. Unplugged Performance indicated it would wait for battery cells after Cybercab needs are met and would generate ongoing revenue for Tesla through licensing and software/network services on the vehicles it produces.

Following strong initial interest, Unplugged Performance posted a follow-up inviting potential investors and strategic partners to email cyber@unpluggedperformance.com. The company clarified that the outreach is solely to gauge interest and does not constitute an offer to sell securities or acceptance of funds at this stage.

The proposal arrives shortly after Elon Musk indicated that Cybertruck production in Texas would be phased out by roughly the middle of 2027 to expand Cybercab output.

Whether Tesla engages with the offer remains to be seen, but the public overture highlights both the aftermarket specialist’s deep experience with the Cybertruck platform and the growing focus on autonomy within Tesla’s manufacturing plans.

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Elon Musk

Elon Musk says Tesla Cybercab future is ‘obvious to anyone with eyes and a brain’

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Elon Musk said the Tesla Cybercab will perform “a majority of all passenger miles” where it is allowed to operate and that point is “obvious to anyone with eyes and a brain.”

Musk used the point to double down on the company’s decision to ax the cult-favorite Cybertruck, as its production space will be removed and transitioned into additional Cybercab lines. The move has catalyzed a polarizing conversation on whether its right or wrong.

Whatever side you are on — it’s happening.

Regardless, Musk seems to be getting to the point that he is done talking about the choice. At some point, you have to think that this was truly a difficult decision for him and the company as well, and this is not something he took lightly. In fact, he’s probably a little bit disappointed with it, too.

But the point remains that the Cybertruck is gone. Musk’s focus is purely on developing an autonomous platform that the world will utilize for transportation, and he’s telling you that anyone “with eyes and a brain” can see it:

Tesla is betting that all of its passengers in the future will be okay with not owning their own personal cars and will be fine with ride-hailing for the rest of their lives. Every dinner, every errand, every trip to the airport and transportation thereafter, will all be operated by ride-sharing, and in Tesla’s perfect world, it will happen in a Cybercab.

As of now, Cybercab is only active in Austin, but it has been spotted all over the country with a driver behind the wheel in those prototypes. In Austin, the car has no steering wheel or pedals for people to control the vehicle.

The Cybertruck dilemma is one that has truly come across the entire Tesla community and while it seems to be a great idea to keep it because people love it, the business side of things is steering Musk and Tesla in another direction.

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Elon Musk

Tesla slims Cybertruck offerings to only its most expensive trim

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Credit: u/dregonzz/Reddit

Tesla has slimmed its Cybertruck offerings to offer only its most expensive trim: the Cyberbeast.

After announcing that the Cybertruck would no longer be produced and the company would wind down manufacturing sometime in the middle of 2027, Tesla started to eliminate some of the configurations offered to customers.

Now, only one remains: the $109,990 Cyberbeast. This is truly what seems like Tesla’s last effort to deter any remaining orders from coming in: eliminate the cheap trims and leave only the high-dollar vehicle within the lineup of Cybertruck options.

Those who want to take advantage of this last-ditch opportunity to own Tesla’s symbolic pickup have to pay to play.

Tesla says the reason for the wind down is truly because of Cybercab and its importance to the future.

Despite cries for Tesla to continue production of the pickup, Musk says it is too difficult to ramp a high-volume line instead of ending the truck altogether. He also says Cybercab is what will take passengers around for the “majority of all miles in any jurisdiction where it is not prohibited by law.”

Tesla is going all in on autonomy, and that’s never been a secret. But the commitment to a two-door, two-seat Cybercab truly limits people from having options for labor or hobbies. It also limits people from having their entire family in a single car.

Parents with even a single child will be required to take multiple vehicles if Cybercab is truly the only option Tesla plans to have.

Elon Musk keeps justifying Tesla Cybertruck’s cancelation, but it’s confusing

Tesla has stated the Robovan will also be in production eventually, but it still does not seem like the most ideal vehicle to own. It seems like it is geared more toward commercial uses, but Tesla might have something in the pipeline for families.

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