Tesla is making large fleet deliveries at the end of the quarter as it pushes for a new all-time delivery record.
Over the last few years, large fleet operators, like rental car companies and car subscription services, have started to invest heavily in electrifying their fleets. This means large orders of new electric vehicles when electric vehicles are already seeing overwhelming demand and significant supply constraints.
Earlier today, we reported that Tesla is expecting a “very high volume” of deliveries over the last few days of the quarter this week.
Now Electrek has learned from sources familiar with the matter that Tesla is focusing on delivering large fleet orders at the end of the quarter.
Tesla is delivering large portions of orders from rental car companies, like Hertz’s order of 100,000 Tesla vehicles, and EV subscription companies.
Last year, Hertz announced an important effort to electrify its fleet of rental cars, led by a massive purchase of 100,000 Tesla Model 3 vehicles. More recently, the company added Model Y vehicles to the order.
The rental car company said that it expects to have all 100,000 Tesla vehicles by the end of 2022, and it is getting a lot of them this week. More are expected to be delivered in Q4.
The Hertz deal has gotten a lot of attention, but other rental car companies, like Avis and Enterprise, have been buying Tesla vehicles, too.
Scott Painter, CEO of EV subscription service Autonomy, told Electrek today that they are expecting to take delivery of about 500 Tesla vehicles by the end of the week.
Autonomy announced its service earlier this year. At the time, the company disclosed having 100 Model 3 vehicles and said it planned to have 10,000 by the end of the year.
It has been more difficult than expected to secure those vehicles. In July, the company was taking delivery of about 200 Tesla vehicles per week, but Painter said that supply all but dried up over the last two months.
Painter also said that Tesla has let them know that deliveries should pick up in Q4. Autonomy is expecting its Tesla deliveries to increase 70% in October and 400% by the end of the year. It is currently buying everything it can gets its hands on since about 5,000 customers are waiting to get an EV under its monthly subscription service.
Last month, the company ordered 23,000 electric vehicles, and Tesla got the largest portion by a wide margin.
Painter said that, like Hertz, the company is not getting any discount from Tesla for its large order.
Electrek’s Take
Large fleet orders and deliveries are kind of new for Tesla, but right now, production capacity is the name of the game.
The demand keeps increasing for EVs at an incredible pace, and the companies that will take the most advantage of it are those who have the highest production capacity and the ability to ramp up the fastest.
In the United States, Tesla currently has the capacity to produce about 15,000 vehicles per week. All other automakers producing electric vehicles combined probably have half that capacity.
Tesla is the name of the game for now. Other automakers, like GM and Ford, are currently adding a lot of capacity fast, but Tesla is also not slowing its growth. It’s going to be interesting to see how the market shares will play out in the EV space over the next few years.
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