Hertz announced Monday that it will buy 100,000 electric vehicles from Tesla, one of the largest purchases of battery-powered cars in history and the latest evidence of the country’s increasing commitment to EV technology.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said 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.”
The purchase by one of the world’s leading rental car companies reflects its confidence that electric vehicles are gaining acceptance with environmentally minded consumers as an alternative to vehicles powered by petroleum-burning internal combustion engines.
As part of the move, Hertz announced that with the order, EVs will comprise 20% of the company’s global fleet, which will be supported by its own EV charging network, “a combination of Level 2 and DC fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023,” according to the company.
In addition, Hertz announced that it has partnered with Tampa Bay Buccaneers quarterback Tom Brady for a new ad campaign surrounding the company’s new EV fleet, titled “Hertz, Let’s Go!”
“Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again,” Brady, the seven-time NFL champion said in a statement. “Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of. 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.”
“I’ve always loved how easy and convenient Hertz makes it for me when I’m traveling to my favorite places like New York, LA and Tampa and can’t wait to see what they continue to have in store,” he added.
Tesla, buoyed by the news, briefly hit a $1 trillion market cap on Monday, putting the company in rareified air with tech giants like Apple, Amazon and Microsoft. The Hertz order helped send the price of Tesla shares jumping more than 8% in early trading Monday, to an intraday record of $997.57, before pulling back slightly by Monday afternoon.
Fields, in an interview with The Associated Press, declined to say how much Hertz is spending for the order, but he said the company has sufficient capital and a healthy balance sheet after having emerged from bankruptcy protection in June.
The deal likely is worth around $4 billion because each Model 3 has a base price of about $40,000. It also ranks at the top of the list of electric vehicle orders by a single company. In 2019, Amazon ordered 100,000 electric delivery vans from Rivian, a startup manufacturer of electric van, pickup trucks and SUVs. Amazon is an investor in Rivian.
Fields said that Teslas are already arriving at the company’s sites and should be available for rental starting in November.
Fields made clear his belief that electric vehicles are increasingly moving into the mainstream and that Hertz intends to be a leading provider of EVs to rental customers. He pointed to surveys showing that over the past five years, consumer interest in electric vehicles has grown dramatically.
“More are willing to try and buy,” he said. “It’s pretty stunning.”
Fields told the AP that Hertz, which is based in Estero, Florida, is in discussions with other automakers, too, about buying additional electric vehicles as it expands its EV fleet as more models enter the marketplace.
The interim CEO declined to say how much Hertz will charge to rent the Teslas or whether they would be more expensive for customers than gas-powered vehicles.
Hertz Global Holdings Inc. filed for bankruptcy protection in May 2020, two months after the COVID-19 pandemic struck worldwide, ravaging the global economy. It was among the first major corporations to be felled by the pandemic as infections surged and shut down travel on a global scale for both companies and vacationers. In October, Hertz named Fields, a former Ford Motor Co. CEO, as its interim chief executive.
The Associated Press contributed to this report.
