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> Let's imagine that they have the Tesla with a very good discount: 30000$ a piece. "To be clear, cars sold to Hertz have no discount. Same price as to consume
by judge2020 5y ago
> Let's imagine that they have the Tesla with a very good discount: 30000$ a piece.
"To be clear, cars sold to Hertz have no discount. Same price as to consumers."
https://twitter.com/elonmusk/status/1452794619410927625?s=20 https://twitter.com/elonmusk/status/1452794619410927625?s=20
- CamperBob2 5y agoThat's crazy. Who pays the single-unit retail price for 100,000 units of something?! That doesn't happen in business, ever, unless something weird is going on.
- kjksf 5y agoThat weird thing is called supply & demand. Econ 101 Traditionally car makers offer volume discounts because they have excess capacity i.e. they can make more cars that they can sell. Currently Tesla is sold out 6 months in advance on Model 3 SR (the one that Hertz is buying). Currently Tesla doesn't care if Hertz buys cars from them or not because they are sold out for the foreseeable future either way. So if Hertz wants 100k EV to be delivered within a year, their only option is Tesla, because no other company can even make that many EV cars. And if Tesla doesn't want to give them discount, they have to pay full price.
- beachy 5y agoThings are never that black and white. Knowing you have a 100k order gives you more confidence to increase production for the medium term, even if it's not that useful in the short term.
- cdash 5y agoWell I don't know why Hertz did it but as for Tesla, that is what happens when you are production limited and not demand limited.