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Colour me skeptical. Hertz just declared itself bankrupt a year ago, now they have 4bn cash to spare? Both things cannot be true in such a small timespan. Eit

Colour me skeptical. Hertz just declared itself bankrupt a year ago, now they have 4bn cash to spare? Both things cannot be true in such a small timespan. Either the 'bankruptcy' was a fraud, or the Tesla deal has some small letters like "of which we will acquire 1,000 per year for the next 100 years". Sure, the official story is "we were bankrupt but we found new investors at the most convenient time", but that could've easily planned beforehand. Also, they raise 1.65bn [1], but suddenly spend 4bn? The math doesn't add up. 1: https://www.foxbusiness.com/markets/hertz-funding-stock-soaring https://www.foxbusiness.com/markets/hertz-funding-stock-soar...

lrem 5y ago
Literally the first line of TFA: Car-rental firm, recently emerged from bankruptcy under new ownership, orders vehicles by the end of 2022
- moralestapia 5y ago
  Literally the last line of MFC: "Sure, the official story is [...], but that could've easily planned beforehand."
nitrogen 5y ago
Were they out of value, or just out of cash?
gruez 5y ago
>Hertz just declared itself bankrupt a year ago, now they have 4bn cash to spare? where did you get 4B from? presumably $40k per car multiplied by 100k cars? The cars are probably financed, so they don't really need the entire $40k upfront. Using the tesla leasing calculator https://www.tesla.com/support/tesla-leasing https://www.tesla.com/support/tesla-leasing, a $40k model 3 only costs $19,299 for the first 36 months. >Also, they raise 1.65bn [1], the source you linked says the 1.65B is from coronavirus relief. It doesn't preclude them from raising more through other channels, eg debt/equity.
- moralestapia 5y ago
  >https://www.theverge.com/2021/10/25/22744504/hertz-tesla-order-100000-vehicles-electrify-fleet https://www.theverge.com/2021/10/25/22744504/hertz-tesla-ord... >the source you linked says the 1.65B is from coronavirus relief. It doesn't preclude them from raising more through other channels, eg debt/equity. Sure, but I doubt they raised more than 4bn. Even if they did, don't you think is a bit fishy to suddenly spend your whole lifeline in (not a few, but) a hundred thousand electric cars?
  - Dylan16807 5y ago
    They don't need 4bn, and it's very normal for them to enter some big long-term contracts for more cars, and the upfront and first-year spending for this won't get anywhere near 1.65bn. So no, not fishy.
toast0 5y ago
They filed for bankruptcy because they couldn't make their lease payments. That doesn't mean they were not viable and needed to liquidate everything, it just means they couldn't pay on time and needed (or wanted) some more time to arrange things. Filing chapter 11 gives you some more time to make payments and come up with a plan to return to operations and pay back debt. Shareholders and creditors agreed to the plan, and it's back to business (well, business continues during Chapter 11 anyway). I didn't see any details on the purchase deal, but maybe they'll come out later. There's probably provisions to change the amounts, and certainly these vehicles will be financed in some form, whether that's Tesla financing or otherwise.

lrem 5y ago

Literally the first line of TFA: Car-rental firm, recently emerged from bankruptcy under new ownership, orders vehicles by the end of 2022

moralestapia 5y ago
Literally the last line of MFC: "Sure, the official story is [...], but that could've easily planned beforehand."

nitrogen 5y ago

Were they out of value, or just out of cash?

gruez 5y ago

>Hertz just declared itself bankrupt a year ago, now they have 4bn cash to spare? where did you get 4B from? presumably $40k per car multiplied by 100k cars? The cars are probably financed, so they don't really need the entire $40k upfront. Using the tesla leasing calculator https://www.tesla.com/support/tesla-leasing https://www.tesla.com/support/tesla-leasing, a $40k model 3 only costs $19,299 for the first 36 months. >Also, they raise 1.65bn [1], the source you linked says the 1.65B is from coronavirus relief. It doesn't preclude them from raising more through other channels, eg debt/equity.

moralestapia 5y ago
>https://www.theverge.com/2021/10/25/22744504/hertz-tesla-order-100000-vehicles-electrify-fleet https://www.theverge.com/2021/10/25/22744504/hertz-tesla-ord... >the source you linked says the 1.65B is from coronavirus relief. It doesn't preclude them from raising more through other channels, eg debt/equity. Sure, but I doubt they raised more than 4bn. Even if they did, don't you think is a bit fishy to suddenly spend your whole lifeline in (not a few, but) a hundred thousand electric cars?
- Dylan16807 5y ago
  They don't need 4bn, and it's very normal for them to enter some big long-term contracts for more cars, and the upfront and first-year spending for this won't get anywhere near 1.65bn. So no, not fishy.

toast0 5y ago

They filed for bankruptcy because they couldn't make their lease payments. That doesn't mean they were not viable and needed to liquidate everything, it just means they couldn't pay on time and needed (or wanted) some more time to arrange things. Filing chapter 11 gives you some more time to make payments and come up with a plan to return to operations and pay back debt. Shareholders and creditors agreed to the plan, and it's back to business (well, business continues during Chapter 11 anyway). I didn't see any details on the purchase deal, but maybe they'll come out later. There's probably provisions to change the amounts, and certainly these vehicles will be financed in some form, whether that's Tesla financing or otherwise.