### Tesla Model 3s from Hertz are Now Selling for Under $20,000

The floodgates have opened for bargain hunters as Hertz begins a massive sell-off of its electric vehicle (EV) inventory, including the Tesla Model 3. The once-prized rentals are now available for less than $20,000—a stark reflection of how a seemingly foolproof strategy has gone awry for the car rental giant.

In an aggressive move, Hertz is determined to sell off at least 30,000 EVs by the end of 2024. This decision comes after an 89% depreciation spike in its EV fleet, translating to a monthly loss of $537 per car. The steep decline in value has necessitated a reassessment of the company's approach to renting out electric cars.

Back in 2021, Hertz made headlines with its ambitious plan to go green, placing a significant order for 100,000 Tesla Model 3s. The expectation was that maintenance would be minimal due to fewer moving parts in EVs, reducing costs over time. However, the reality has been far different, with Tesla slashing prices and increased repair costs building up over the past quarters. High-mileage vehicles have further compounded the issue, leading to significant devaluation.

With the resale prices now dipping as low as $15,000 when factoring in the $4,000 federal tax credit on used EVs, Hertz is clearly on a mission to offload its surplus. The company's website currently lists many of these discounted Teslas available for immediate purchase. The ongoing sale is an effort to reduce inventory and mitigate further financial losses.

Hertz's strategy aims to retain only enough EVs to meet the current demand from renters, thereby limiting depreciation impacts on its books. Despite the setbacks, Hertz intends to continue its fleet reduction through 2025, giving potential buyers a prolonged window to capitalize on these lower prices.

The repercussions of this large-scale sell-off extend beyond Hertz itself, posing questions for both the EV market and the car rental industry. As more customers lean towards electric vehicles, rental agencies will need to adapt their business models to manage these fleets efficiently. Hertz's experience might serve as a cautionary tale or a transitional phase, as the industry learns to balance green initiatives with economic viability.

Ultimately, while the scenario spells potential losses for Hertz, it opens up opportunities for consumers looking to drive away in a pre-owned Tesla Model 3 at an attractively low price.