Hertz to Buy 100,000 Teslas in $4.2 Billion Deal
Florida-based Hertz announced on Monday it will be investing in the largest electric vehicle rental fleet in North America, which includes an initial order of 100,000 Tesla vehicles by the end of 2022, to go with new EV charging infrastructure worldwide.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields, in a statement. “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”
Starting in early November through the end of 2021, Hertz says customers will be able to rent a Model 3 at Hertz airport and neighborhood locations in major U.S. cities and select cities in Europe. The company will include “digitized guidance” for customers while also have a new EV rental booking process through its Hertz mobile app.
Hertz is also leveraging seven-time Super Bowl champion Tom Brady for a new “Hertz, Let’s Go!” campaign.
“Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again,” said Tom Brady, in a statement. “I’ve been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious.”
Check out the new Hertz Tesla ads below featuring Tom Brady:
Bloomberg says the deal is worth a reported $4.2 billion, according to unnamed people familiar with the matter. Hertz is likely paying “close to list prices” reports Bloomberg, and not a huge discounted rate, as with typical gas car rental fleets.
Hertz filed for bankruptcy in June and this new EV move signals the first big move from new owners Knighthead Capital Management and Certares Management. The huge order from Tesla may prevent rivals from copying Hertz’s strategy, as the latter locks up orders from Elon Musk’s company.
New entry Model 3 orders are currently seeing an estimated delivery date of June 2022, as Tesla is seeing huge demand and also dealing with a global semiconductor shortage.
News of the Hertz deal sent Tesla shares rallying, as the stock is currently up 3.9% as of writing, trading at $945 per share, after touching an all-time high of $970 at open.