Hertz Tesla Sell-Off: Can the Market Absorb 20,000 EVs?

Some time ago, we were all a bit surprised when Hertz decided to sell off at least 20,000 used Teslas. There’s no clear reason why they did it, but I think it might be because Hertz realized buying EVs wasn’t the best move for their business — or maybe they just found the cars weren’t as suitable for rental use as they thought. Rental fleets have to meet strict standards, so in that sense, their decision makes some sense. Hertz is definitely going to sell off some cars from time to time — that’s just part of staying in business and keeping the wheels turning.

Some people are worried this move could hurt used Tesla prices, but I don’t think Hertz’s decision is going to cause a major dip. I mean, how many Teslas are out there now? Dropping 20,000 into the market might sound like a lot, but it’s really not when you look at the big picture. It’s a small slice of Hertz’s fleet overall, and rental companies always offload cars when they’re done with them. This is just business as usual.

Rental cars and taxis work the same way — once they’re past their prime, they get sold, often at lower prices. But that doesn’t really mess with the broader market. Just look at Crown Vics or other ex-rental and ex-taxi cars. Tons of those hit the used market, but the overall price impact is pretty minimal.

Now, if Hertz had a million Teslas and suddenly dumped 900,000 of them, yeah — that might stir things up a bit. But even then, it wouldn’t crash the whole market. Most of those cars would end up with buyers who are already cool with ex-rentals. Meanwhile, everyone else would still have options.

People know ex-rental vehicles usually take a beating. Some folks worry that constant use of fast chargers on rental Teslas might wreck the battery over time. I mean, those cars need to be ready to go pretty much all the time—there’s not a lot of room for slow charging. Plus, rental Teslas are often running almost 24/7, which makes people think they’re too worn out to be worth buying. Most buyers would rather get a car from a private owner who took care of it instead of rolling the dice on a former rental.

Sure, an ex-Hertz Tesla might come cheaper, but it's not going to crash used car prices. There just aren’t that many of them, and the folks shopping for used Teslas aren’t always the same ones who’d take a chance on a rental. People looking for a solid, long-term ride will still pay more for one with a clean history. So yeah, some might take the gamble on a rental, but it won’t wreck the market.

And we’ve already seen this play out. It’s been months since the news dropped, and Tesla prices in the U.S. haven’t collapsed just because Hertz dumped a bunch of cars. Those vehicles have their own little corner of the market. They don’t appeal to everyone, and that’s fine. The folks who want one usually know what they’re getting into, and the folks who don’t will steer toward something better maintained. It’s two different groups.

So really, it’s not something to stress over. Rental companies sell their cars cheap, but that doesn’t mean it tanks the whole market. There’s always a separate niche for that kind of car, and it usually doesn’t overlap much with the broader used car market—especially not on a global scale. There just aren’t enough of them to make a dent in overall pricing after all.