👩‍⚖️ December 27: Hertz’s Purge, Scout’s Lawsuit, and NIO’s Success

The Gist

Hertz is offloading EVs to renters with deals on Teslas and Bolts, revealing struggles with profitability and waning demand. VW faced backlash over a data leak exposing sensitive EV owner info but insists no harm was done. California dealers are fighting VW’s Scout brand for bypassing traditional dealerships with direct sales. Meanwhile, China’s NIO Onvo L60 is crushing the budget EV market, selling 20,000 units in 100 days. Tesla’s Shanghai Megafactory completed record-fast construction, set to double Megapack battery production. Lastly, Toyota’s hydrogen dreams are deflating, with FCEV sales plummeting 54% this year, though some automakers still bet on hydrogen’s future.

Fuel for Thought

• 🙏 Hertz’ EV Purge: Buy or Bye-Bye?

  • 🔒 VW's Data Leak: An Open Secret?

  • 🚙 California vs. VW: The Scout Standoff

    • Scout’s Honor or Franchise Fiasco?

  • ⚡️ NIO Onvo L60: Affordable EV Champion

    • China’s Affordable EV Disruptor Hits Big

  • 🏭 Shanghai Megafactory: Double It

    • Tesla’s Battery Hub Completes Construction in Reco …

  • 💨 Toyota’s Hydrogen Dreams Dry Up

    • Fuel Cell Flop: Toyota’s FCEV Nightmare

BUSINESS

🙏 Hertz’ EV Purge: Buy or Bye-Bye?

Hertz is offering renters the chance to buy their rentals. While this approach clears inventory, it reveals underlying EV profitability woes for the rental giant. Here's the breakdown:

• The Offer: Hertz renters can snag a 2023 Tesla Model 3 for $17,913 or a Chevy Bolt for $18,422, complete with a 12-month/12,000-mile warranty and a 7-day return option.

• What’s Behind the Sell-Off?: Hertz once aimed to electrify its fleet with 100,000 Teslas but scaled back due to repair costs (20% higher for Teslas) and tepid customer demand.

• The Results: As of March, 2,100 EVs were up for sale. Today? Just 175 remain—a sign the strategy is winding down.

🔒 VW's Data Leak: An Open Secret?

What happened here?
A VW subsidiary’s cloud slip-up left sensitive vehicle data exposed for months. Let’s unpack the drama.

Who dropped the ball?
VW’s Cariad software division. Movement data for 800,000 EVs and contact info of owners? Leaked. Oops.

Wait, they leaked WHAT?
Precise location data for 460,000 vehicles. But don't worry—they swear no sensitive info like passwords or payment data was exposed. Still, hackers could connect the dots if they tried hard enough.

How’d they fix it?
The flaw was patched after a Chaos Computer Club report. VW insists the hack required “expertise and time.” But should customers just… trust that?

🚙 California vs. VW: The Scout Standoff

Scout’s Honor or Franchise Fiasco?

California dealers are ready to rumble over VW’s direct sales approach for its Scout brand. Here's why it’s making waves:

• What’s Scout?: A spinoff of VW, Scout plans to sell electric SUVs and trucks directly to buyers, sidestepping dealerships.

• Dealer Drama: California law prohibits direct sales if a manufacturer has franchised dealerships in the state. VW has plenty—Audi, Porsche, and more.

• Cease and Desist: The California New Car Dealers Association isn’t bluffing, claiming VW’s Scout plan is a job-killing, law-breaking maneuver.

⚡️ NIO Onvo L60: Affordable EV Champion

China’s Affordable EV Disruptor Hits Big

NIO’s new budget EV, the Onvo L60, is a hit, delivering over 20,000 units in just 100 days.

• Price Power: Starting at $21,000 (battery rental model), it undercuts rivals like Tesla Model Y by nearly 40%.

• Sales Surge: October saw 4,300 sales, and production is set to double by March 2025 to meet demand.

• Tech Edge: A recent cold-weather test proved its efficiency, with an average consumption of just 21.0 kWh/100 km.

🏭 Shanghai Megafactory: Double It

Tesla’s Battery Hub Completes Construction in Record Time

Tesla’s Shanghai Megafactory is poised to double Megapack production.

• Speed Record: Built in just seven months, beating Tesla’s Giga Shanghai timeline.

• Capacity Goals: Annual output of 10,000 Megapacks (40 GWh energy storage).

💨 Toyota’s Hydrogen Dreams Dry Up

Fuel Cell Flop: Toyota’s FCEV Nightmare

Toyota’s hydrogen push has hit a dead end.

• Sales Slump: November saw just 134 units sold worldwide, with year-to-date sales down 54%.

• Why It Matters: Hydrogen cars promised quick refueling and zero emissions, but high costs and scarce infrastructure make EVs the preferred choice.

• What’s Next?: Despite Toyota’s struggles, BMW and Honda still believe in hydrogen’s future. But is this optimism—or denial?

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