Tesla valued at $1tr after Hertz places order for 100,000 of its EVs
Rental giant Hertz plans to step up investment in electrifying its fleet and building out charging infrastructure across US and Europe
Car rental company Hertz has purchased 100,000 Teslas as part of wider plans to invest in electrifying its rental fleet, helping push the valuation of Elon Musk’s company to over $1tr.
Announcing the bumper electric vehicle order yesterday, global rental giant Hertz said it would roll out the Tesla Model 3s across major locations in the US and parts of Europe by 2022, confirming the first models will be available to rent from early November this year.
Hertz also announced plans to install thousands of chargers throughout its location network, aiming to work in 65 markets by the end of 2022, and over 100 by the end of 2023, to deliver on site EV chargepoints. Hertz’s EV customers will also have access to Tesla’s supercharging stations when they lease a car.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields interim CEO of Hertz. “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 Tesla order is the first major move in the company’s plan to electrify its fleet after being taken over by Knighthead Capital Management and Certares Management, following its bankruptcy earlier in the year.
The company will also be revamping its rental experience, offering EV customers a digitized guide on how to use EVs and introducing a quicker booking process via their mobile app, it said.
To promote the new EV fleet, the company has also launched an advertising campaign with former Super Bowl champion, Tom Brady, who said: “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.”
The announcement from Hertz help ramp up the value of Tesla’s shares, making Elon Musk’s company the world’s first $1tr carmaker, according to reports.
It makes Tesla one of the world’s most valuable public companies, with only Apple, Amazon and Google’s owner Alphabet having previously breached the $1tr valuation mark.
