Following the announcement of Tesla’s 100,000 Hertz cars in a $4.2 billion USD deal, the U.S. automaker’s shares rose significantly, and one analyst says the move was mutually beneficial for both Tesla and Hertz.
Tesla’s Hertz deal was called a “major win-win” by DataTrek Research Co-Founder Nicholas Colas, according to Yahoo Finance.
Colas said the move shows “how new and old industries still need each other to maximize the impact of disruptive technologies,” emphasizing that it’s also a much-needed upgrade to Hertz’s business model.
Hertz to Offer Uber Drivers Tesla Rentals from $334/week https://t.co/NEUKLZGroy
— TeslaNorth.com (@RealTeslaNorth) October 27, 2021
In a note to investors, Colas wrote, “Hertz locks up a significant part of Tesla’s production over the next year, and at what should be healthy margins.”
Colas continued, “Tesla now has 10 percent of its total future 12-month production capacity spoken for, something which will help it plan plant utilization and optimize for efficient production.”
The 100,000-car order will be delivered by the end of 2022, and will also include new charging stations installed at Hertz locations. In addition, Tesla owners will be able to simply use their own keycards when renting a vehicle from Hertz.
Colas also pointed out Hertz’s national footprint, which often includes airports and multiple locations in large cities, which he says will remain a useful partner for Tesla amidst a worldwide transition to electric vehicles (EVs).
Elon Musk revealed earlier this week Hertz paid full price for the Model 3 fleet, with no discounts.
