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In the NEWS: Tesla-Hertz Deal Is Great News—for Carvana Stock: https://www.barrons.com/articles/carvana-cvna-stock-hertz-tesla-51635347289
Hertz Teams With Uber, Carvana in Big Shift to Electric Cars: https://ca.finance.yahoo.com/news/hertz-teams-uber-carvana-major-110000354.html
Tesla Hertz deal. Hertz is bulking up its global fleet with a hundred thousand electric vehicles from Tesla. This is in turn great news for Carvana, which is working with Hertz to dispose of these cars. Isn't that wild?
It makes complete sense. Let's think about this...
What lanes in an auction are the world's worst? The rental car lane. Everybody knows this. The slugs, nobody really wants them. There's specific people that could buy them because they need to fill holes. They get a title. They don't have to worry about arbitration, things like this.
But, definitely not what you would call a major attraction for people driving from Syracuse to Manheim, Pennsylvania to go buy Hertz cars, right?
The brilliance of this, right, right out of the box of Carvana is going to have to do all of their remarketing, what happens to their top line revenue?
Obviously it goes into stratosphere, right? That's number one.
If the cars are flowing from Hertz, so I would imagine they're gonna be buying them from Hertz and put them through the system.
They may share profit or loss or whatever, how that goes. It doesn't really make much difference what I would call wholesale hold back. They could do a similar thing with those. And I'm sure they already figured that out. They don't need a nitwit like myself to explain that.
However, all of a sudden Carvana's revenue just went through the roof, which obviously drives tremendous value on Wall Street.
Number two, what do you think with Carvana? They just put the cars through with their eyes closed. No, this gives them a natural flow of hundreds of thousands of cars for them to pluck from. There's one, that's not going to our remarketing system, that is coming and sticking with us. This is a natural flow.
From the beginning...
How is Carvana ever going to survive?
How are any of these online retailers going straight without a natural flow of vehicles?
It's physically impossible.
Are they going to continue to pay wild money?
Like Hertz is paying on the auction block $6,000 more than a car could ever be worth in a million years, if you were going to sell it retail. But now they're going to rent that car $282 a day, whatever. Right.
And then it's going to Carvana to actually plot or pass along through their marketplace.
IN THE MEANTIME, it gives Carvana or way more influence. Right now when you look at different auctions, you can't get bodywork done. Why is that? Because they're doing Carvana's recon, right?
Adding inventory to their structure will make the engine run more efficiently and eventually lead to critical mass in the lanes. It's a smart move that will pay dividends in the future for their investors.
The CASINO EFFECT: When you sell everything through the lanes, DING DING DING! The buyers will come ready to buy, and they're happy to pay if you're happy to sell.
Leading Carvana to critical mass and more top line revenue.
This is a BEAUTY DEAL for Hertz and Carvana! Hats off from Robert Hollenshead!
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