Hertz CEO steps down following Tesla and EV debacle costs company big


Hertz CEO Stephen Scherr has decided to step down following the rental firm’s big bet on Tesla and other EVs went awry, as the debacle cost the company big.

Hertz announced on Friday that Scherr would leave his post as CEO and a member of the Board of Directors on March 31. He will be succeeded by former Chief Operating Officer of both Delta Airlines and GM’s Cruise self-driving unit, Gil West.

“We are thrilled to have Gil join Hertz as Chief Executive Officer,” Tom Wagner, Vice Chair of Hertz Board, said. “Gil’s experience as a successful leader in operationally intensive businesses will further strengthen the Company’s world-class team of over 27,000 global employees who work tirelessly to deliver outstanding service to customers daily.”

The move came just a few months after Hertz revealed its big bet on EVs, which went south. In late 2022, Hertz placed a massive order for 100,000 Tesla Model 3 and Model Y vehicles. Then, it decided to bulk up its fleet with more cars from other EV companies, including Polestar and GM.

However, EV values dropped, especially with Tesla, who continued to cut prices throughout the bulk of 2023. Hertz lost nearly $250 million due to the price reductions and ultimately decided to sell some of the units outright.

Hertz now selling former Tesla rentals at bargain prices

Hertz will reduce its EV fleet from 60,000 to 20,000 and use “some” of the funds to bolster its combustion-engine vehicle fleet.

Scherr leaves Hertz after two years and believes his work helped the company remain competitive in a massively changing industry.

“Over the last two years, the Hertz team has worked diligently to put the company on track for long-term success in a changing automotive landscape,” he said. “Hertz is well-positioned for the future, and I look forward to seeing the company execute on its strategy as a leader in mobility.”

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Hertz CEO steps down following Tesla and EV debacle costs company big





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Tesla China offers limited-time free paint upgrades for Model S and X


Tesla China has joined other markets in offering limited-time incentives on its vehicles, including discounts on paint and more.

In multiple posts on Weibo in the last few weeks, Tesla has noted that it’s offering special, limited-time deals on paint colors and insurance subsidies for its Model S, 3, X and Y units, lasting until March 31.

In addition to the Model 3 and Model Y deals announced late last month, the automaker on Friday said it would offer an additional option for the Model S and Model X, marking a great even better deal on paint options than was previously announced for the Model 3 and Model Y.

For the Model S and X, Tesla is currently offering completely free upgrade paint options, representing substantial savings. You can see the photo detailing the deal below, as posted on Weibo.

Credit: Tesla China | Weibo

“Starting from March 16, purchase a Model S or Model X, and enjoy free car paint,” wrote Tesla in the post. “This event is available until the current car is sold out or until further announcement.”

Tesla’s upgrade paint options for the Model S and Model X normally range from ¥13,000 (~$1,831) to ¥25,000 (~3,521), so the deal represents quite a significant savings. Currently, the Model S purchase price starts at ¥698,900 (~$98,430), while the Model X starts at ¥738,900 (~$104,063).

Tesla is also offering a low annual interest rate of 2.5 percent on the Model S and X on vehicles delivered by March 31, as well as additional deals on the Model 3 and Y.

As announced a few weeks ago, Tesla is also offering a limited-time insurance subsidy of ¥8,000 (~$1,127) on the Model 3 and Model Y RWD configurations when taking delivery by March 31. The automaker is also offering paint color options for just ¥2,000 (~$282), and it’s offering special annual interest rates as low as 1.99 percent, as well as.

The incentives come alongside similar programs offered in the European and North American markets, including a U.S.  special in which buyers and those who make a trade-in will receive 5,000 free Supercharging miles, so long as they take delivery by March 31. The automaker also announced plans to increase the price of the Model Y in Europe later this week, and in the U.S. after this month.

Tesla China insurance registrations hit 13,200 units in March’s 2nd week

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Tesla China offers limited-time free paint upgrades for Model S and X





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Tesla is no longer just a luxury brand, says major auto outlet


One major automotive outlet says Tesla is no longer just a luxury brand, in part due to its unique pricing strategy over the past few years.

In a column shared on Friday, Automotive News Executive Editor Jamie Butters laid out an update to a 2022 piece that had initially called Tesla a luxury brand. Now, he says, the automaker is more than a luxury brand, generally competing in a lower-priced market than back then—and especially as the Model Y seemingly became the world’s best-selling model last year.

In part, Butters notes, the shift from being a luxury brand to a household name comes from Tesla’s price cuts made last year, and as Tesla prepares to produce an ever higher-volume, lower-priced “Model 2” vehhicle next year. While the cuts indicated an interesting shift to a more dynamic pricing strategy, the move to eventually produce an even cheaper electric vehicle (EV) is all according to CEO Elon Musk’s first “Master Plan.”

It’s worth noting that while the Model S and Model X are still considered luxury vehicles, joining the newly-launched Cybertruck at the higher end of the price spectrum, the Model 3 sedan and Model Y SUV are generally competing with vehicles in more affordable segments—though Butters is keen to point out that distinguishing brand segments is not an exact science.

Tesla price cuts push EV market toward affordability with broader influence

In 2022, Tesla’s prices were higher and were competing with companies such as Mercedes-Benz, Aston Martin and Lexus. About a year since Tesla made major price reductions, Butters says the outlet will now instead compare Tesla to companies like Toyota and Ford than to the aforementioned luxury brands.

Tesla price cuts in 2023, current Model Y incentives

Throughout much of the beginning of last year, Tesla launched sweeping price cuts across its lineup, that crucially brought its Model Y price down near the U.S. average car price. The move also sent the emerging EV industry into a frenzy, as many struggled to push as

Over the weekend, Tesla also announced a new wave of Model Y price increases in the U.S. and Europe, with prices set to increase by $1,000 and €2,000, respectively, in the weeks to come. While the Model 3 starts at $31,490 after the federal tax incentive in the U.S., and at €42,990 in Germany, the automaker is currently offering the Model Y at the following prices before prices are increased:

Tesla Model Y in the U.S. (until March 31)

  • Model Y RWD: $36,490 (with federal tax credit, before local credits)
  • Model Y AWD Long Range: $41,490 (with federal tax credit, before local credits)
  • Model Y AWD Performance: $44,990 (with federal tax credit, before local credits)

Tesla Model Y in Germany (until March 22)

  • Model Y RWD: €44,990
  • Model Y AWD Long Range: €52,490
  • Model Y AWD Performance: €58,490

Tesla Master Plan, Part One

Musk penned the first Tesla Master Plan in 2006, with the post laying out a pretty simple objective that fits right in with the automaker’s gradual decrease in pricing as it works toward affordability and EV adoption:

  1. Build sports car
  2. Use that money to build an affordable car
  3. Use that money to build an even more affordable car
  4. While doing above, also provide zero emission electric power generation options

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Tesla is no longer just a luxury brand, says major auto outlet





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