Part 2/9:
Hertz's difficulties can be traced back to several high-profile missteps, particularly its controversial decision to purchase an overwhelming 100,000 Teslas at what many now believe were peak prices. The timing of this purchase coincided with a volatile period characterized by high demand and supply chain constraints. Ironically, shortly after this acquisition, Tesla began lowering its vehicle prices, significantly diminishing the resale value of Hertz’s newly acquired fleet. As a result, Hertz has grappled with steep depreciation losses and had to liquidate parts of its Tesla inventory under unfavorable market conditions, leading to realized losses.