is out today with the saga of how some self-important Wall Street bozos totally mismanaged the Hertz campaign to make electric cars part of its fleet. In the aftermath of their idiocy, they managed to set the EV revolution in America back years. It is a classic tale of idiots with more money than brains moving fast and breaking things, thinking all the while there would be no consequences for their willful stupidity.
It now appears the order for 100,000 Teslas was hammered out in secret negotiations over nine months, often with Elon Musk himself involved. It initially seemed like a coup for both companies because Hertz got a jump on Enterprise and Avis, while on the day of the announcement in October 2021, Tesla shares surged 13%, pushing its market value past $1 trillion for the first time.
While Hertz had installed its own charging network at some airports, at others such as Newark, New Jersey, the local grid infrastructure could not support the number of chargers Hertz needed to get EVs back on the road quickly. Once a Tesla was returned, Hertz employees often had to drive them for miles to find a Supercharger, adding dramatically to the cost of keeping the cars in the fleet.Early in 2023, another warning light flashed.
When Hertz was able to get its Teslas fixed, the repairs were expensive. An Autopilot radar assembly can cost $1,500 to replace and as much as $3,000 to calibrate. Many Teslas had to be junked altogether because a crash could result in a permanent misalignment of the body panels or because the risk of battery damage made them uninsurable. That, combined with the higher rate of accidents than on Hertz’s other vehicles, led to a spike in repair bills.
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