Hertz Selling Off Teslas as It Reduces Its EV Fleet and the Implications on the Market

Hertz Reducing EVs in Fleet

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Hertz Global Holdings, a major player in the vehicle rental industry, recently announced a significant change in its electric vehicle strategy. The company is selling about 20,000 EVs, including a substantial number of Teslas, from its U.S. fleet. This decision, made just two years after their initial partnership with Tesla, signifies a notable pivot in Hertz's approach to electric mobility and has implications for the broader EV market, particularly for Tesla.

The move by Hertz is believed to be a response to a cooling demand in the electric vehicle sector. It's a trend that is not isolated to Hertz but resonates across the industry. Automakers such as General Motors and Ford are revising their EV production plans due to this slowdown in sales growth. However, before the UAW saw the big three give major wage hikes, EVs were ramping up across the automotive sector.

Financial Impact and Market Perception of Tesla

The decision by Hertz to reduce its Tesla fleet has significant financial implications. Firstly, thousands of used Teslas are flooding the market, driving down the resale value. Second, since the announcement, Tesla’s stock has been declining.

The factors influencing Hertz's decision to sell off its Tesla fleet indicate the broader challenges the EV industry faces. The company claims that higher expenses related to collisions and damages for EVs have been a significant concern. This issue has led Hertz to shift its focus away from its initial goal of electrifying a substantial portion of its fleet. How this affects Tesla’s rumored in-house Rental Program is anyone’s guess at this point.

Tesla doesn’t do much advertising, but Hertz certainly does. The Hertz advertising campaign featured 7-time Super Bowl Champion Tom Brady behind the wheel of a Model 3. When the G.O.A.T endorses a brand, millions listen. However, this was not utilized as part of what could’ve been a parallel marketing campaign by Tesla.

Brady was even quoted as saying: “I've been driving an EV for years, and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious.”

Tom Brady in a Model 3

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The Future of Tesla in the EV Landscape

The recent move by Hertz to sell a large portion of its electric fleet, particularly Teslas, signals a complex period for the EV market. It raises questions about Hertz’ transition to electric and the role of companies like Tesla in shaping its future. Tesla is the sector's pioneer and has been at the forefront of the EV industry, pushing boundaries with its innovative technology and design. However, as some manufacturers mysteriously shift away from electric (right after the big three settled labor strife), Tesla will continue to navigate these changes while maintaining its leadership position.

One of the significant challenges for Tesla in this evolving market is balancing innovation with operational and financial sustainability. The company needs to address the concerns highlighted by Hertz's decision, such as the higher costs associated with EV maintenance and repairs. Additionally, Tesla must continue to innovate in areas like battery technology, charging infrastructure, and autonomous driving to stay ahead of the competition.

Tesla's Role in a Changing EV Ecosystem

The perceived cooling demand for EVs also allows Tesla to reassess its market strategy. This could involve exploring new segments, enhancing customer engagement, and further improving the affordability and accessibility of its vehicles. Tesla's response to these market dynamics will be crucial in defining its future trajectory in the EV industry.

Tesla's influence extends beyond just manufacturing electric vehicles; it plays a significant role in shaping the EV ecosystem. For instance, the company's advancements in battery technology have implications for energy storage and renewable energy integration. Tesla's impact on the automotive industry has also single-handedly pushed other manufacturers to accelerate their transition to electric mobility.

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Tesla’s New Signal Viewer Panel in Service Mode+ Allows You to View Real-Time Data

@scotsrule08 on X

Tesla’s latest software update, version 2025.2, brings new features to Service Mode, continuing the trend of improving in-vehicle diagnostics.

Currently, this feature is only available for vehicles with AMD Ryzen infotainment systems and requires Service Mode+, which is a subscription service aimed at technicians. Intel-powered vehicles aren’t supported yet, but we expect this feature to roll out to them as well unless hardware limitations prevent it.

Thanks to Spencer for providing an image of the panel in action.

Signal Viewer Panel

While update 2025.2.6 adds four service mode improvements, including updates to brake burnishing, charge port calibration, and noise recording panel improvements. In this article, we’ll focus on the new signal viewer panel.

This new panel offers a live data feed from selectable vehicle sensors. You select the signals you’re interested in and it’ll plot the signal on a graph. In addition to allowing you to view real-time signal data, it also allows you to record them.

The signals are searchable and can be easily added or removed from the panel. You can track up to 10 sensors, and the UI allows three of them to be viewable at once.

However, this is Service Mode and it’s more than just pretty looks. You can really dig down into these charts. You can pan them left and right through time, and tapping a specific point shows the exact value of that signal. The panel also supports pinch-to-zoom, enabling you to adjust the time scale across all panels simultaneously.

This feature is exclusive to Service Mode+, which requires a subscription to Tesla’s ToolBox3 software and a connection to a computer. It’s designed to help technicians diagnose issues related to signal quality, noise in the vehicle’s electrical systems, and signal variance in components during driving.

We’re excited to see Tesla’s continued focus on repairability, especially with additions like the Cybertruck’s Interactive Wiring Diagram and the launch of the Tesla Online Parts Catalog, which lets customers purchase parts directly.

Plus, with the reduced cost of ToolBox 3 subscriptions, even DIY enthusiasts now have access to tools that make Tesla repairs more accessible.

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Tesla Introduces New Model Y Variants in Europe; Ends Launch Series

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Tesla has updated its Model Y lineup in Europe, introducing new standard configurations while discontinuing the limited-edition Launch Series. With the new variants now available, European customers will have more choices and cheaper options to pick from.

The Launch Series and some of its exclusive features will no longer be offered—except in the UK, where it remains available alongside the new lineup.

New Models Introduced

Tesla’s new Model Y lineup in Europe includes three main variants. The prices vary slightly from country to country.

• Rear-Wheel Drive (RWD): Priced at €44,990, this model is the most affordable new Model Y, but it also has the shortest range and is missing a few features available on other trim levels.

• Long Range Rear-Wheel Drive (LR RWD): Available for €49,990, this version is essentially the same as the RWD model, but with a larger battery. It has seen a €1,000 price increase compared to the outgoing Long Range RWD model.

• Long Range All-Wheel Drive (LR AWD): At €52,990, this model has seen a price drop of €2,000, making it a better deal than the previous LR AWD Model Y. This is also the only new Model Y to come with most of the same features as the Launch Series, including additional speakers, a subwoofer, premium materials inside the cabin and improved acceleration. Acceleration boost should also become available for this model, letting it match the performance of the Launch Series.

All Model Y variants come with all the improvements that we’ve discussed about the new Model Y, including the new front and rear light bars, improved aerodynamics, ventilated seats, improved heat and sound isolation, and the 8-inch rear touchscreen. Some exclusive options, like the Midnight Cherry Red paint, appear to no longer be available. However, Tesla has already said that they’ll be introducing new paint options for the Model Y in North America.

Compare Model Y Variants

Here’s how the various Model Y variants compare to each other:

Launch Series Ends

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The Launch Series, which debuted just weeks ago in Europe, has now been phased out. This limited-edition model was priced at €60,990 and included a suite of premium features comparable to a bundle deal you may find with other products. It came equipped with Full Self-Driving (FSD), Acceleration Boost, and exclusive badging on the rear liftgate, door sill plates, and puddle lights.

While the Launch Series is no longer available for new orders in most European countries, customers can still get a similar vehicle by opting for the Long Range AWD model and manually adding premium features like FSD. Acceleration Boost, which was standard in the Launch Series, is expected to become available for purchase once these vehicles are delivered or soon afterward. However, some exclusive elements, such as badging and trim details, will remain unique to the discontinued edition.

For now, the UK remains an exception, still offering the Launch Series alongside the newly introduced models.

Performance Model Still to Come

With Tesla now introducing the expected variants of the refreshed Model Y, one notable absence is the Performance model. While the Launch Series was fast due to the Acceleration Boost addon, there’s no doubt the Performance version will be in a league of its own.

What we saw Tesla do with the 2024+ Model 3 Performance variant was more than just using binned motors. The vehicle featured unique bumpers, a spoiler, an improved suspension, sport seats, Track Mode V3 and other features that made the vehicle stand out compared to the Model 3 AWD.

The Performance version of the new Model Y is expected to become available later this year, however, expect it to carry a $5-$8k premium over the AWD model.

Other Regions to Follow

As Europe phases out the Launch Series, other regions are expected to see similar changes. With the other models now revealed, owners in other regions have a better idea of whether they should buy the Launch Series or wait for the additional models to arrive.

Tesla naturally adjusts its offerings based on market demand, and if sales of the Launch Series remain strong in other parts of the world, Tesla will likely wait it out a little longer before offering the other models.

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