On Monday, Hertz made a groundbreaking announcement, revealing an order of 100,000 vehicles from Tesla Inc. This move signifies a significant shift for Hertz towards transitioning its fleet to electric vehicles, a remarkable decision considering the company’s recent emergence from bankruptcy. The news had an immediate positive impact on Tesla’s stock, surging by 4.3% and poised to open at a record high in response to the sizable order. Furthermore, Tesla’s Model 3 achieved a milestone by becoming the first electric vehicle to lead in monthly new car sales across Europe.
Hertz disclosed that the order comprises 100,000 Tesla Inc. cars, slated for delivery by the close of 2022. Concurrently, the car rental company announced plans to integrate numerous charging stations across its network. Renters of Tesla Model 3 vehicles will benefit from access to 3,000 Tesla supercharging stations spanning the United States and Europe.
This massive order, valued at approximately $4.4 billion, represents the largest from Hertz to the electric car manufacturer. The base price for Tesla’s most affordable Model 3 sedan is around $44,000. Hertz’s interim CEO, Mark Fields, commented, “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest.”
The push for electric vehicles aligns with U.S. President Joe Biden’s commitment to advancing environmentally friendly transportation to combat climate change. However, challenges such as the need for an extensive charging network remain crucial hurdles to the realization of this ambitious plan. Bloomberg News initially reported on this groundbreaking order.
Hertz had faced financial turmoil, filing for bankruptcy protection last year amid a drastic decline in travel demand during the peak of the pandemic. Rescued by a consortium of investors, including Knighthead Capital Management, Certares Opportunities, and Apollo Capital Management, Hertz has now taken a bold step toward a sustainable and electric future.
