Hertz net worth is partially in the vehicles they own. If they need cash, they can sell the cars to make it back. They know that the cars are depreciating asset

Hertz net worth is partially in the vehicles they own. If they need cash, they can sell the cars to make it back. They know that the cars are depreciating assets but they also know that they're still assets. Tesla decided to decrease the amount of profit it made on each car in order to keep a higher sales volume and by doing so caused Hertz cars to instantly depreciate as people could buy a new tesla for cheaper than a used one. Tesla's profit margin was and probably still is higher than most manufacturers so they can afford to drop prices while hertz could not. This kind of reminds me of First Republic bank crashing because 10 year TBills became cheaper than 1 year TBills thanks to the anti-inflation measures the fed used to combat inflation. An unusual set of circumstances.