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In 2020 (one year before Hertz made its purchase), Tesla models 3 and Y were retaining 90% of their resale value after three years. That resale value retention

by hluska 2y ago

In 2020 (one year before Hertz made its purchase), Tesla models 3 and Y were retaining 90% of their resale value after three years. That resale value retention was harmed by two things that would not have been evident when they purchased the EVs: 1.) Tesla started cutting prices on new EVs. 2.) Incentives to purchase new EVs stayed high. If we interpret fiduciary duty that broadly, I think I better start cutting grass instead.

ghaff 2y ago
There are a lot of reasons to think the execs who made the decision were stupid--and yes, it's easier with hindsight. But the reflexive "they should have been sued" or even tossed in jail you get here for a lot of things gets pretty dangerous and can very easily be extended to engineers who make a mistake. It does encourage the others perhaps but probably isn't what you want to do in general.
- lenerdenator 2y ago
  > There are a lot of reasons to think the execs who made the decision were stupid--and yes, it's easier with hindsight. But the reflexive "they should have been sued" or even tossed in jail you get here for a lot of things gets pretty dangerous and can very easily be extended to engineers who make a mistake. Who's saying that engineers should be thrown in jail for making a mistake? I'm saying that there's reason to believe that maybe Hertz's leadership didn't do their jobs. Lawsuits for that kind of thing are filed all. The. Time. in this country. If we're here to create value for shareholders by any legal means, and they don't do that, well... the monetary loss and resulting lawsuit is the risk that justifies the insane amount of money people in that level of the company make. Who knows, maybe the suit would be tossed. If they don't want to deal with that, maybe a nice six-figure and full benefits compensation package would be more their speed.
lenerdenator 2y ago
> 1.) Tesla started cutting prices on new EVs. Sounds like the executives who did the deal should have come to an understanding with Tesla about not doing things to massively dilute the value of the fleet. Either they forgot to, or they bought the bullsh*t. Either way they're incompetent and don't deserve more money than most people will make in their entire lives within the span of a few years of work. Drag them in for a deposition to find out which one it was and recover some of the money.

by hluska 2y ago

ghaff 2y ago

There are a lot of reasons to think the execs who made the decision were stupid--and yes, it's easier with hindsight. But the reflexive "they should have been sued" or even tossed in jail you get here for a lot of things gets pretty dangerous and can very easily be extended to engineers who make a mistake. It does encourage the others perhaps but probably isn't what you want to do in general.

lenerdenator 2y ago
> There are a lot of reasons to think the execs who made the decision were stupid--and yes, it's easier with hindsight. But the reflexive "they should have been sued" or even tossed in jail you get here for a lot of things gets pretty dangerous and can very easily be extended to engineers who make a mistake. Who's saying that engineers should be thrown in jail for making a mistake? I'm saying that there's reason to believe that maybe Hertz's leadership didn't do their jobs. Lawsuits for that kind of thing are filed all. The. Time. in this country. If we're here to create value for shareholders by any legal means, and they don't do that, well... the monetary loss and resulting lawsuit is the risk that justifies the insane amount of money people in that level of the company make. Who knows, maybe the suit would be tossed. If they don't want to deal with that, maybe a nice six-figure and full benefits compensation package would be more their speed.

lenerdenator 2y ago

> 1.) Tesla started cutting prices on new EVs. Sounds like the executives who did the deal should have come to an understanding with Tesla about not doing things to massively dilute the value of the fleet. Either they forgot to, or they bought the bullsh*t. Either way they're incompetent and don't deserve more money than most people will make in their entire lives within the span of a few years of work. Drag them in for a deposition to find out which one it was and recover some of the money.