Hertz announced on Thursday in a regulatory filing with the SEC that it has made a “strategic decision” to slash its electric vehicle fleet by 20,000 vehicles.
In the filing, Hertz said the figure is roughly one-third of its global EV fleet. “These vehicle dispositions, which were initiated in December 2023 and are expected to take place in an orderly fashion over the course of 2024, will cover multiple makes and models,” the company said in the filing.
The EVs that Hertz has put up for sale will “remain eligible for rental” until they ultimately sell. Hertz said that a portion of the proceeds from the sale will go into the purchase of combustion engine vehicles, which are being utilized at a higher demand.
Hertz has dealt with a major decrease in the value of its EV fleet, it said. During the fourth quarter of 2023, Hertz felt “approximately $245 million of incremental net depreciation expense related to the sale.”
Bloomberg first reported the filing.
It also said that it expects the sale to better balance the supply against the expected demand for EVs, which was lower than expected.
The filing sheds light on why a fleet of Tesla vehicles have already been listed for sale in a program that Hertz is calling “Rent2Buy.” Some of the vehicles were listed on Hertz’s website for as little as $17,700 before tax credits could be applied.
Currently, the maximum tax credit on a used EV is $4,000, so these Tesla Model 3 units that Hertz is selling could fall under $14,000.
Hertz was transparent in its filing that it believed a transition back to gas-powered vehicles would help the company’s financials.
It said:
“It is expected that the planned reduction in the EV fleet and reinvestment in additional ICE vehicles will improve Adjusted Corporate EBITDA across 2024, as vehicles are rotated, and in 2025, by which time all of the vehicles included in this plan are expected to be sold.”
Hertz inked a $4.2 billion strategy to buy 100,000 EVs from Tesla in October 2021. There was no specific deal placed between the two companies, and CEO Elon Musk said that the Model 3s that Hertz purchased were bought at full price.
Hertz then expanded its EV offerings, offering the Model Y and cars from other manufacturers, like Polestar.
Hertz said during its Q3 Earnings Report that it was still learning the ropes of EV ownership, and that price cuts Tesla made on its lineup had hindered its financials as it missed profit estimates.
Tesla will increase its Full Self-Driving subscription price, meaning it will eventually be more than the current $99 per month price tag it has right now.
Already stating that the ability to purchase the suite outright will be removed, Tesla CEO Elon Musk said earlier this week that the Full Self-Driving subscription price would increase when its capabilities improve:
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”
This was an expected change, especially as Tesla has been hinting for some time that it is approaching a feature-complete version of Full Self-Driving that will no longer require driver supervision. However, with the increase, some are concerned that they may be priced out.
$99 per month is already a tough ask for some. While Full Self-Driving is definitely worth it just due to the capabilities, not every driver is ready to add potentially 50 percent to their car payment each month to have it.
While Tesla has not revealed any target price for FSD, it does seem that it will go up to at least $150.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Additionally, the ability to purchase the suite outright is also being eliminated on February 14, which gives owners another reason to be slightly concerned about whether they will be able to afford to continue paying for Full Self-Driving in any capacity.
Some owners have requested a tiered program, which would allow people to pay for the capabilities they want at a discounted price.
Unsupervised FSD would be the most expensive, and although the company started removing Autopilot from some vehicles, it seems a Supervised FSD suite would still attract people to pay between $49 and $99 per month, as it is very useful.
Tesla will likely release pricing for the Unsupervised suite when it is available, but price increases could still come to the Supervised version as things improve.
This is not the first time Musk has hinted that the price would change with capability improvements, either. He’s been saying it for some time. In 2020, he even said the value of FSD would “probably be somewhere in excess of $100,000.”
The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.
— Elon Musk (@elonmusk) May 18, 2020
Tesla has chosen to axe the ability to purchase Full Self-Driving outright from a select group of cars just days after CEO Elon Musk announced the company had plans to eliminate that option in February.
The company is making a clear-cut stand that it will fully transition away from the ability to purchase the Full Self-Driving suite outright, a move that has brought differing opinions throughout the Tesla community.
Earlier this week, the company also announced that it will no longer allow buyers to purchase Full Self-Driving outright when ordering a pre-owned vehicle from inventory. Instead, that will be available for $99 per month, the same price that it costs for everyone else.
The ability to buy the suite for $8,000 for a one-time fee at the time of order has been removed:
NEWS: Tesla no longer allows buyers to purchase FSD outright in the U.S. when ordering a pre-owned vehicle directly from inventory. Tesla now gives you the option to either subscribe for $99/month, or purchase FSD outright after taking delivery (available until February 14th). pic.twitter.com/1xZ0BVG4JB
— Sawyer Merritt (@SawyerMerritt) January 23, 2026
This is a major move because it is the first time Tesla is eliminating the ability to purchase FSD outright for one flat fee to any of its vehicles, at least at the time of purchase.
It is trying to phase out the outright purchase option as much as it can, preparing people for the subscription-based service it will exclusively offer starting on February 14.
In less than a month, it won’t be available on any vehicle, which has truly driven some serious conversation from Tesla owners throughout the community.
There’s a conflict, because many believe that they will now lose the ability to buy FSD and not pay for it monthly, which is an attractive offer. However, others believe, despite paying $8,000 for FSD, that they will have to pay more money on top of that cost to get the unsupervised suite.
Additionally, CEO Elon Musk said that the FSD suite’s subscription price would increase over time as capabilities increase, which is understandable, but is also quite a conflict for those who spent thousands to have what was once promised to them, and now they may have to pay even more money.
News
Tesla Robotaxi has a highly-requested hardware feature not available on typical Model Ys
These camera washers are crucial for keeping the operation going, as they are the sole way Teslas operate autonomously. The cameras act as eyes for the car to drive, recognize speed limit and traffic signs, and travel safely.
Tesla Robotaxi has a highly-requested hardware feature that is not available on typical Model Ys that people like you and me bring home after we buy them. The feature is something that many have been wanting for years, especially after the company adopted a vision-only approach to self-driving.
After Tesla launched driverless Robotaxi rides to the public earlier this week in Austin, people have been traveling to the Lone Star State in an effort to hopefully snag a ride from one of the few vehicles in the fleet that are now no longer required to have Safety Monitors present.
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Although only a few of those completely driverless rides are available, there have been some new things seen on these cars that are additions from regular Model Ys, including the presence of one new feature: camera washers.
With the Model Y, there has been a front camera washer, but the other exterior “eyes” have been void of any solution for this. For now, owners are required to clean them manually.
In Austin, Tesla is doing things differently. It is now utilizing camera washers on the side repeater and rear bumper cameras, which will keep the cameras clean and keep operation as smooth and as uninterrupted as possible:
🚨 Tesla looks to have installed Camera Washers on the side repeater cameras on Robotaxis in Austin
pic.twitter.com/xemRtDtlRR— TESLARATI (@Teslarati) January 23, 2026
Rear Camera Washer on Tesla Robotaxi pic.twitter.com/P9hgGStHmV
— TESLARATI (@Teslarati) January 24, 2026
These camera washers are crucial for keeping the operation going, as they are the sole way Teslas operate autonomously. The cameras act as eyes for the car to drive, recognize speed limit and traffic signs, and travel safely.
This is the first time we are seeing them, so it seems as if Safety Monitors might have been responsible for keeping the lenses clean and unobstructed previously.
However, as Tesla transitions to a fully autonomous self-driving suite and Robotaxi expands to more vehicles in the Robotaxi fleet, it needed to find a way to clean the cameras without any manual intervention, at least for a short period, until they can return for interior and exterior washing.
Tesla to increase Full Self-Driving subscription price: here’s when
Tesla starts removing outright Full Self-Driving purchase option at time of order
