Tesla failed to deliver half of the 100,000 vehicle order from Hertz.
In October 2021, Hertz sent its stock value rocketing with a 100,000 vehicle order from Tesla due by 2022, but less than half that order has been fulfilled. Hertz really want a fleet of Tesla Model 3 badly.
In a report on Hertz's annual regulatory filing by Bloomberg, it has been revealed that the company's fleet peaked in 2022 at 428,700 vehicles, and Tesla models accounted for 11% of that total. That means Hertz has fewer than 50,000 Teslas on hand.
This isn't good news considering the original announcement sent Tesla's value over one trillion dollars for the first time and renewed interest in the rental-car company just weeks after its post-bankruptcy public offering.
Some of the shortfall can be blamed on Hertz, as Elon Musk tempered expectations after the order's announcement by stating publicly that Tesla had more demand than production availability and no contract had been signed. In Hertz's filing, under risk factor, it states that its EV strategy is based on the "ability to secure adequate vehicle supply within the time frame we, and our customers, expect."
However, it's likely other factors came into play as well. Over 2022, Tesla raised car prices several times, likely throwing Hertz's budget out of whack. Also, Elon Musk, whose personal brand is tied to the Tesla brand, spent most of the year making a fool of himself with Twitter while leaving Tesla itself rudderless.
General Motors currently makes up most of the Hertz fleet at just under 25%. Hertz also invested in EVs from Ford, Toyota, Nissan, and then Tesla.
At this point, it's hard to see any other automaker being able to supply another 50,000 electric vehicles to Hertz, let alone without leaving its dealerships dry.
General Motors delivered a total of 23,320 all-electric vehicles in the US in 2022 in total, far less than Tesla delivered to Hertz. Along with General Motors and Tesla, Hertz has also ordered cars from Polestar, mainly the Polestar 2.
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