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Fortune
Fortune
Ryan Hogg

Tesla rushing to give rental companies big discounts amid plunging EV resale values

New Tesla electric vehicles fill the car lot at the Tesla retail location on Route 347 in Smithtown, New York (Credit: John Paraskevas—Newsday RM/Getty Images)

Retail customers may approve of Tesla’s habit of announcing sudden, steep price cuts for its electric vehicles. The same cannot be said for corporate customers like leasing and rental companies, which rely on cars holding their value on the resale market.

We saw it in the U.S. with Hertz, which had to write down much of its Tesla fleet after headline price cuts hit the secondhand market, forcing the business into an embarrassing U-turn. 

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