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100,000 Model 3s x 52 (a new rental customer each week) = 5,200,000 rental customers.
Let's say 2,000,000 are either repeat customers or current Tesla owners. That still leaves us with roughly 3,000,000 rental customers who have never driven a Tesla before. If major competitors such as Enterprise and Avis follow suit, we are talking ~10,000,000 rental customers who have never driven a Tesla, in one year.
After driving a Tesla, will those customers then go purchase a gasoline car for their next car? Most likely not.
I agree completely. Once people experience an EV, particularly a Tesla, they'll be sold on the technology. Driving an EV is SO MUCH FUN. And they'll realize that charging an EV is no big deal, and not that frequent of a thing, and that range anxiety isn't a real concern. The Hertz deal is going to boost Tesla ownership.
Here's how we became Tesla owners. Last year in October I had just bought a Volvo XC90 T6 three weeks earlier. My husband mentioned that he liked Teslas and that when he was ready to sell his car in a couple of years he was going to get one. I said, hey, let's make an appointment at the Cincinnati dealer (two hours away from our home) and go do a test drive this afternoon. He said sure, sounds like a fun way to spend a Saturday. We didn't plan to buy one. My husband had a 2018 Mustang GT that only had 7,000 miles on it. We test drove a Model S and a Model 3. I couldn't believe how much fun it was. I giggled as I hit the accelerator. I suddenly understood what all the fuss was about. That evening, my husband ordered a performance Model 3, and 7 weeks later it was delivered. Somewhere in between all of that he sold his once-beloved and suddenly embarrassingly loud Mustang 2018.
One test drive and my husband and I were placing an order for a car we didn't even need.
I agree completely. Once people experience an EV, particularly a Tesla, they'll be sold on the technology. Driving an EV is SO MUCH FUN. And they'll realize that charging an EV is no big deal, and not that frequent of a thing, and that range anxiety isn't a real concern. The Hertz deal is going to boost Tesla ownership.
Here's how we became Tesla owners. Last year in October I had just bought a Volvo XC90 T6 three weeks earlier. My husband mentioned that he liked Teslas and that when he was ready to sell his car in a couple of years he was going to get one. I said, hey, let's make an appointment at the Cincinnati dealer (two hours away from our home) and go do a test drive this afternoon. He said sure, sounds like a fun way to spend a Saturday. We didn't plan to buy one. My husband had a 2018 Mustang GT that only had 7,000 miles on it. We test drove a Model S and a Model 3. I couldn't believe how much fun it was. I giggled as I hit the accelerator. I suddenly understood what all the fuss was about. That evening, my husband ordered a performance Model 3, and 7 weeks later it was delivered. Somewhere in between all of that he sold his once-beloved and suddenly embarrassingly loud Mustang 2018.
One test drive and my husband and I were placing an order for a car we didn't even need.
I used to take my friends to the Tesla store to schedule test drives for them. Out of 5 friends, 4 ended up placing model 3/Y orders right after. One friend went with a $20k CPO bmw 3 series simply because it was so much cheaper (and definitely not better).
I really wonder who would test drive a $45k Tesla then go on to buy a $45k ice car instead. I bet it happens very seldomly.
My husband became such a fan he also bought a bunch of stock. He's very happy about that decision, too.
I am sure he is . But keep in mind that Tesla's market cap was less than half the current value less than 6 months ago.
$542,800,000,000 Tesla market cap on 18 May 2021
Elon Musk himself said that he is surprised the value of the stock went up so much after the announcement of the 100,000 purchase by Hertz. Tesla has plenty of demand, they are production limited. So the Hertz purchase simply means that the wait time will grow longer. There will be no additional revenue. And this is from the man whose networth is around $300 billion (far ahead of #2 in the world).
So the stock is free to make a drastic drop without any real affect on the business.
Keep in mind that the entire automobile business (other than Tesla) around the world has a market cap of ~$1.7 trillion .
I am sure he is . But keep in mind that Tesla's market cap was less than half the current value less than 6 months ago.
$542,800,000,000 Tesla market cap on 18 May 2021
Elon Musk himself said that he is surprised the value of the stock went up so much after the announcement of the 100,000 purchase by Hertz. Tesla has plenty of demand, they are production limited. So the Hertz purchase simply means that the wait time will grow longer. There will be no additional revenue. And this is from the man whose networth is around $300 billion (far ahead of #2 in the world).
So the stock is free to make a drastic drop without any real affect on the business.
Keep in mind that the entire automobile business (other than Tesla) around the world has a market cap of ~$1.7 trillion .
I assume you did not buy any shares then. I think the risk is if you're putting up money that you can't live without on this, but hopefully no one's doing that. I'm on the side that the stock has way too much potential future profits built in, but I also think it doesn't make sense to evaluate it as solely an automobile business.
I'm on the side that the stock has way too much potential future profits built in, but I also think it doesn't make sense to evaluate it as solely an automobile business.
There are many people that are very bullish on Tesla. This prediction was made last summer when Tesla became the world's most valuable automobile company. And it was from a competitor, no less.
Quote:
Originally Posted by - Jul. 28th 2020 Herbert Diess, Volkswagen’s Chairman
Tesla (TSLA) could become most valuable company in the world. Tesla is 2 years ahead of the industry in critical areas. The head of the German automaker congratulated Tesla and its results and said that he believes Tesla, along with Apple and Volkswagen, could become the most valuable company in the world within just 5 to 10 years.
There are many people that are very bullish on Tesla. This prediction was made last summer when Tesla became the world's most valuable automobile company. And it was from a competitor, no less.
A competitor in the automotive business, but a lot of the exuberance around Tesla's stock price is that it is a tech company that has a competitive and growing automotive business.
A competitor in the automotive business, but a lot of the exuberance around Tesla's stock price is that it is a tech company that has a competitive and growing automotive business.
Stock price is $1114.00 today, but 26 weeks ago it was $572.84
I think all I am saying is not that much has changed in the last 6 months to the expected revenue stream in the next few years, but the market cap increased by half a trillion dollars.
Tesla choose it's Austin factory site in summer of 2020, and it's Berlin site was announced in November 2019. He signed agreement for Shanghai in July 2018.
The announcement of a $35,000 Tesla Model 3 Available was made on February 28, 2019 (which made the marketcap drop from $55B to $33B by the end of May).
Elon Musk debuted on the 2012 Forbes Billionaires List with a net worth of $2 billion.
Stock price is $1114.00 today, but 26 weeks ago it was $572.84
I think all I am saying is not that much has changed in the last 6 months to the expected revenue stream in the next few years, but the market cap increased by half a trillion dollars.
Tesla choose it's Austin factory site in summer of 2020, and it's Berlin site was announced in November 2019. He signed agreement for Shanghai in July 2018.
The announcement of a $35,000 Tesla Model 3 Available was made on February 28, 2019 (which made the marketcap drop from $55B to $33B by the end of May).
Elon Musk debuted on the 2012 Forbes Billionaires List with a net worth of $2 billion.
All I'm saying is that it may be inaccurate to be comparing Tesla to other automakers since it clearly intends currently does and intends to continue to operate outside of solely the automotive business.
Model 3 used prices may take a big hit in 2-3 years when these rentals flood the market.
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