Wolf isn’t so impressed by TSLA rental sales

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by davefairtex

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

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.

 

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