Tesla Stock Soars After Hertz Buys 100,000 Teslas
Tesla recently processed 100,000 vehicle order from rental car giant, Hertz. Source: NBC News
As of October 25, 2021, Hertz has become the largest ever purchaser of electric automobiles. The specific brand of electric cars is Tesla, Inc., our generation’s largest and most well-known electric car company. Hertz, who filed bankruptcy during the pandemic, has revived their name as new owners of 100,000 model 3 Teslas. Mark Fields, interim chief executive officer of Hertz, stated that their move to electrify their fleet is being used to “democratize access to electric vehicles,” meaning they are giving users who cannot normally purchase electric vehicles the chance to rent one. This strategic move questions the real power Tesla has to change how society moves, given its high prices, as well as our impact on the environment.
At a base price of $43,990 for the Model 3, Tesla’s most affordable electric vehicle is not particularly cheap. Primarily driven by supply chain pressures reducing the number of chips needed for the vehicles, Tesla’s ability to produce cars dramatically decreased, and customers face month-long wait times to receive their cars. The increase in the price of Teslas narrows its target customers to wealthy, middle to upper-class individuals, which represents only 10% of U.S. households. Although Tesla is currently marketed to a select population of Americans, Elon Musk has confirmed a new car being released in 2023: the Tesla Hatchback. This car will come with a price of $25,000, which is significantly cheaper than all its current models and will expand Tesla’s customer base. Although this change is still far from being enough for the average American, the Biden Administration is currently implementing methods to push more Americans to electric cars.
In August, Biden announced that he wants 50% of the vehicles sold in the US to be either battery-electric, fuel-cell electric, or plug-in hybrid. In his recently passed Build Back Better bill, Biden included a $12,500 EV tax credit to mitigate the high financial costs of purchasing and maintaining an electric vehicle. This, in turn, will lead to a decrease in greenhouse gas emissions from passenger vehicles, which currently contribute 29% of the total US emissions.
Teslas, as well as other electric vehicles, are commonly known to be good for the environment, but those familiar with the technology needed for the car have raised doubts as to its supposed benefits. To compare the emissions from creation to use of an electric car versus a gasoline car, the Wall Street Journal reached out to researchers at the University of Toronto to conduct a study comparing a Tesla Model 3 versus a lightweight compact SUV, the Honda Rav4. Due to the components of electric car batteries, such as nickel and cobalt, the Model 3 generated 65% more emissions than the RAV4 during its creation phase. However, at 20,600 miles, the greenhouse gas emissions from building and driving the two cars equated to the same, and from then on Tesla began to prove its low greenhouse gas efficiency. At 100,000 miles, the RAV4 had produced 77% more emissions than the Tesla Model 3, thus proving the environmental benefits from using an electric vehicle thus outweighed the negative costs associated with creating it.
Through the creation of cheaper electric cars, incentives provided by the Biden Administration, and its proven environmental benefits, Tesla will continue to pave the path for itself and other electric vehicle manufacturers. Every year, the technology improves, its batteries last longer, and its sales increase, thereby transforming how our society travels as well as its impact on the environment. Although not completely a carbon-free process, Teslas are the stepping stone to a pathway of sustainable living.