Wolf isn’t so impressed by TSLA rental sales

by davefairtex

Wolf used to be in the car biz.  This is his wheelhouse.

We are primarily funded by readers. Please subscribe and donate to support us!

Fleet sales are generally not a positive sign.  If retail demand were there, why on earth would you sell 100k cars at a big discount (dropping your margins accordingly) vs selling them to the public at full price?

wolfstreet.com/2021/10/25/tesla-rental-deal-is-propaganda-coup-for-hertzs-selling-shareholders-tesla-but-sales-to-rental-fleets-are-low-quality-sales-automakers-dont-tout/

Selling vehicles to rental fleets is a low-margin business that automakers don’t tout and that investors consider low-quality sales. When the percentage of fleet sales to overall sales is large, investors consider them a negative. And automakers are hounded for it. And that’s why automakers don’t tout those deals.

 

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.