Hertz Orders 100,000 Teslas in $4 Billion Electric Fleet Push
Hertz orders 100,000 Tesla vehicles worth $4 billion to build the largest electric rental fleet in North America. The massive purchase pushes Tesla's market cap past $1 trillion and signals a major shift for the recently reorganized rental company.
Hertz places a massive order for 100,000 Tesla vehicles worth approximately $4 billion as it rebuilds its business model following a recent bankruptcy exit. This landmark purchase sends Tesla's market capitalization soaring past the $1 trillion mark and provides significant mainstream validation for the electric vehicle industry. The rental company plans to make these Model 3 sedans available at select U.S. locations starting next month.
The order represents a bold bet by Hertz's new owners, Knighthead Capital Management and Certares Management, to differentiate the brand from competitors like Avis and Enterprise. Electric vehicles will eventually make up 20% of Hertz's 500,000-vehicle global fleet. To support this transition, Hertz builds its own charging infrastructure and gives renters access to Tesla's network of 3,000 supercharging stations across the country.
This aggressive electrification strategy contrasts sharply with the traditionally slow pace of change in the car rental industry. Hertz also sees practical financial benefits in this shift, as electric vehicles depreciate less quickly than traditional gas cars and cost less to maintain and refuel. Interim CEO Mark Fields declares that electric vehicles are now mainstream and insists the new Hertz leads the way as a modern mobility company.