Hertz, a rental car firm, has placed an order for 100,000 Teslas as part of a larger strategy to electrify its fleet. Tesla’s Model 3 cars will be available to rent through Hertz in major US and European cities beginning in early November, according to a press release. The news comes just months after Hertz was able to avoid bankruptcy.
Tesla’s stock price rose to $998.74 early in the day after the purchase was revealed, bringing its market valuation to over $1 trillion, before falling again. However, by the time the market closed for the day, the price had climbed again, concluding at $1,024.86 a share, with a market capitalization of $1.01 trillion. As CNBC points out, this puts it in the company of other firms with trillion-dollar market caps such as Apple, Amazon, and Microsoft. At Bloomberg broke the storey first, claiming that the purchase is the single largest order for electric vehicles ever, representing $4.2 billion in revenue to Tesla. In pre-market trade, the automaker’s stock was up 4.3 percent on the announcement. This morning, it was also announced that Tesla’s Model 3 was the first electric vehicle to top European monthly sales statistics in September. Despite chip shortages in the automotive market, the business posted record sales in the third quarter earlier this month.
Anyone renting a Tesla from Hertz will be able to use the automaker’s 3,000 superchargers located around the United States and Europe. Hertz plans to complement these charges with “thousands” of its own, scattered “around its geographical network,” according to the company.
After the pandemic hit the automobile rental business hard, Hertz filed for bankruptcy in May of last year. Investors led by Knighthead Capital Management and Certares Management eventually refinanced the corporation, which is more than a century old, for $5.9 billion. Hertz now wants to electrify nearly all of its roughly 500,000 cars and vans, according to Bloomberg, with the Tesla order being a crucial first step.
“Electric vehicles are already mainstream, and we’ve only just begun to witness increased global demand and interest,” Hertz interim CEO Mark Fields said in a press statement. Starting with the largest EV rental fleet in North America and a commitment to develop our EV fleet and provide the finest rental and recharging experience for leisure and corporate clients throughout the world, the new Hertz will lead the way as a mobility company.”
GOAT’s recognize GOAT’s. Introducing our all new EV fleet (@TomBrady not included) #Hertz #LetsGo pic.twitter.com/TElSE2PDKb
— Hertz (@Hertz) October 25, 2021
Hertz has launched a new ad campaign featuring Tom Brady to promote the relocation.
