Hertz Places Order for 100,000 Tesla Vehicles

The order, which is expected to be delivered by the end of next year, is a sign of the growing momentum in the shift toward electric cars.,

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Hertz places an order for 100,000 Tesla vehicles.

The Tesla order would give Hertz one of the world's largest fleets of rental electric vehicles.
The Tesla order would give Hertz one of the world’s largest fleets of rental electric vehicles.Credit…Arnd Wiegmann/Reuters
  • Oct. 25, 2021, 8:25 a.m. ET

Hertz, the car rental agency, said on Monday that it had placed an order for 100,000 Teslas, a sign of growing momentum in the shift to electric vehicles. The order, which is expected to be delivered by the end of next year, would give Hertz one of the world’s largest fleets of rental electric vehicles.

Hertz, which emerged from bankruptcy over the summer, said it was teaming up with football quarterback Tom Brady to promote its E.V. offerings.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Mark Fields, Hertz’s interim chief executive, said in a news release. “The new Hertz is going to lead the way as a mobility company, starting with the largest E.V. rental fleet in North America and a commitment to grow our E.V. fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

The company did not disclose the value of the deal. Bloomberg, which reported the news before the announcement, said the order would generate about $4.2 billion of revenue for Tesla, suggesting Hertz was paying close to face value for the vehicles. Car rental firms typically demand deep discounts for large vehicle orders.

Hertz customers will be able to rent a Tesla Model 3 in some major markets in the United States and Europe starting in early November. The company also said it planned to install thousands of chargers at its locations.

After the Tesla order, electric vehicles will make up more than 20 percent of Hertz’s global vehicle fleet, the company said.

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