Who Wants 30,000 Used Teslas?

At the start of the year, after Hertz announced it was selling off its fleet of Teslas, the news sounded promising for potential buyers like Bijay Pandey, a 34-year-old self-employed data worker in Irving, Texas. Pandey saw an opportunity to purchase a red 2022 Long Range Model 3 with 70,000 miles at a discounted price of around $25,000, thanks to a $4,000 tax credit. However, what seemed like a good deal quickly turned into a nightmare.

Issues arose immediately after the purchase, with the car experiencing problems such as incorrect voltage readings and hidden damages like a quarter-size hole in the undercarriage. A Tesla technician warned Pandey of safety concerns related to a damaged high-voltage battery pack, leading to a hefty $13,078.58 repair bill. Despite Hertz’s offer to replace the car, Pandey faced a two-month wait, making loan payments in the meantime.

Hertz, once a prominent player in the rental-car industry, has faced a series of setbacks over the past few years. From bankruptcy during the pandemic to becoming a meme stock, the company has struggled to regain its footing. The decision to incorporate electric vehicles into its fleet, particularly Teslas, further complicated its recovery.

With plans to make 20 percent of its cars electric, Hertz acquired approximately 30,000 Teslas, along with other electric vehicles. However, the move coincided with challenges in the automotive industry, including soaring vehicle costs. As a result, Hertz’s financial woes deepened, leading to a significant loss in market value and the resignation of its CEO.

Now, Hertz faces the daunting task of disentangling itself from its Tesla investments. The partnership, once seen as a strategic move, has become a burden for the rental-car company as it navigates a turbulent period in the market.