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Bottom line: American car rental company Hertz has ordered 100,000 Tesla vehicles in an effort to build the largest EV rental fleet in North America and one of the largest in the world. The deal also makes it easier for prospective EV buyers to get some seat time in a Model 3 before committing to a purchase or lease.
From early November, customers will be able to rent a Tesla Model 3 at Hertz neighborhood and airport locations in major US markets and select cities in Europe. The company said it will also be installing thousands of chargers across its network, ensuring that customers who rent an EV will have access to 3,000 Tesla supercharging stations across the US and Europe.
Hertz interim CEO Mark Fields said electric vehicles are now mainstream, adding that we've only just begun to see rising global demand and interest.
"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," Fields said.
Once the order is complete by the end of 2022, EVs will account for more than 20 percent of Hertz's global fleet.
According to Bloomberg, the deal is the single largest order ever for electric vehicles and is worth approximately $4.2 billion.
The deal comes at an interesting time for Hertz, which just emerged from Chapter 11 bankruptcy on July 1. The rental car company filed for bankruptcy protection in May 2020, citing a decline in revenue and a bleak forecast due to the Covid-19 pandemic.
Tesla's stock is up more than seven percent on the news as of this writing while Hertz is trading up more than six percent.