Hertz just placed an order for 100k Teslas in an effort to shake up the rental car market. Fresh out of bankruptcy this is the largest order for Tesla.
Prior to this announcement it had been estimated that the EV rental market was growing to the point that it might reach 19 billion worldwide by 2027. Now that market is going to get a big push from this purchase from Hertz with Tesla.
There is strong interest for electric cars around the world and providing those options at a place like Hertz is going to help millions more to become familiarized with these vehicles and think about maybe getting one for themselves after they have experienced a drive.
The rental car market took a dive during the pandemic and the auto rental shortage caused an issue in other areas as a result. With travel picking back up though it's only a matter of time before they see recovery with people getting out and renting cars once more.
There are many consumers who prefer an EV when renting and many who would likely be interested in the option of renting a Tesla if given the choice, this helps them to set themselves apart from other car rental companies out there.
Tesla shares obviously increased after the news of this recently came out. The deal for these Tesla vehicles is going to bring in about $4.2 billion for the company.
Thanks to the recent order now the electric vehicles are going to make up more than 20% of the Hertz global car rental fleet.
Hertz will also be looking at installing chargers throughout its location network too. This means that for customers who rent a vehicle they will have potential access to thousands of different supercharging stations around Europe and the U.S. eventually. The change will start this year and soon customers in places like U.S. major markets and certain select cities in Europe will be able to rent a Tesla Model 3 from Hertz.