December, 2023
dumps all Tesla's out the doorYet SiXT is pulling the plug on its partnership with Tesla, while by 2030, 90% of ther rental cars must be electric.
SiXT, one of the world's largest car rental companies, is completely done with Tesla. It is taking bold steps: from now on, no new cars from the American brand will be bought, and all Tesla's already in the driveway will be sold.
So reports the German weekly Focus. The German rental giant is listed on the stock exchange, but is still 56% owned by the brothers Konstantin and Alexander SiXT. The latter is ceo of the company and, supported by his brother, can therefore make big decisions.
Why is the rental tycoon quitting Tesla? Family SiXT is not at all upset that Tesla recently made their cars much cheaper. Tesla did so because new manufacturing methods allow it to produce more cheaply. Therefore, to beat competing carmakers, Tesla drastically lowered prices.
The "ping pong" of prices means that SiXT-owned Tesla cars, still bought at the old higher price, are suddenly worth much less. Now SiXT is facing a residual value problem.
The residual value problem could have been avoided with price agreements, which SiXT does make with many other suppliers. When SiXT buys cars, it contracts that the manufacturer will buy the cars back later for an agreed price. Tesla does not want to make such deals.
That's why SiXT sells the Tesla cars itself. 'And that disappoints us. The residual value on gasoline cars is considerably higher. At the same time, we find that repairs on electric cars are relatively more expensive.' Insuring a Tesla also proves more expensive than a gasoline car because even a minor collision can damage the battery, after which the car is declared a total loss. 'With interest rates on loans also going up, we have to be careful with our spending.' Furthermore, SiXT reports that renters are not actually looking for electric cars: 'That demand lags behind gasoline cars.'
The ambition does remain unchanged: by 2030, 90% of SiXT cars should be electric. But so it will do so with other brands. It has placed orders with Chinese carmakers BYD, Nio and MG. The BMW iX and the Peugeot e-208 are also in the order book.