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The challenge of repairs especially from gigacasting is almost certainly a problem at that scale, even without Tesla's slow parts chain. After finding damage i
by nyrikki 2y ago
The challenge of repairs especially from gigacasting is almost certainly a problem at that scale, even without Tesla's slow parts chain.
After finding damage in a car I was going over for a friend, I would avoid them personally even if it made sense for utility needs.
I know repairability isn't a huge deal for most people, but it is for fleets and me, I was surprised Herz made such a commitment as the concerns were well known.
Obviously this is just one aspect of the value crash.
- matwood 2y agoIt's not just TSLAs either. A recent episode of ATP talked about getting a dinged bumper fixed on a Rivian that cost ~$20k. That's almost as much as I paid for my last car that still runs great.
- MBCook 2y agoI believe the cost of repairs was indeed a big reason Hertz cited about why it wasn’t working out. They expected to save on maintenance but the higher repair costs seem to have destroyed that benefit.
- rasz 2y agoDoesnt make sense. Maintenance is something you pay for, repairs come out of insurance or are covered by warranty.
- jdlshore 2y agoI doubt a big company like Hertz carries insurance that’s similar to individual car owners. Presumably they have their own maintenance and repair shops.
- rasz 2y agowho pays for repairs when you crash Hertz Tesla? who pays for repairs when you crash into Hertz Tesla?
- nyrikki 2y agoFleets don't go to jiffy lube, when a car isn't being rented (e.g. at the shop) it is costing the company money, and Tesla's price drops cause issues, as covered in Hertz's earnings call. https://ir.hertz.com/static-files/75a583c0-90e0-496a-8b45-9f9d9389a93a https://ir.hertz.com/static-files/75a583c0-90e0-496a-8b45-9f... > For context, collision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle. > Second, where a car is salvaged, we must crystallize at once any difference between our carrying value and the market value of that car. The MSRP declines in EVs over the course of 2023, driven primarily by Tesla have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden. > Taking account of the impact on depreciation, collision and damage and RPU relating to our EV fleet, we estimate that had our fleet in Q3 been similarly sized but comprised solely of ICE vehicles our EBITDA margin would have been several margin points higher.