Hertz Global Holdings Inc has placed an order for a whopping 100,000 Tesla’s in a huge first step toward electrifying its rental-car fleet and in the process mainstreaming EVs.
Bloomberg reported the news a few minutes ahead of the press release, with sources who asked not to be identified, and said that it represents around $4.2 billion of revenue for Tesla. It will be the single-largest purchase ever for electric cars. (Editor’s note update: In 2019, Amazon placed an order with Rivian for 100,000 delivery vans.) The cars will be delivered over the next 14 months from an already tight supply of Tesla vehicles.
Bloomberg points out that the cost of the order implies that Hertz is paying list prices for the Tesla’s and is thus not getting a discount for its large order, which car-rental companies usually get from automakers.
Tesla Model 3s will be available to rent at Hertz locations in major US markets and parts of Europe starting in early November, according to the source. Customers will of course have access to Superchargers, and Hertz is also building its own charging infrastructure.
Hertz filed for bankruptcy in May 2020 as a result of the pandemic travel slump. Demand for rental cars then swung sharply upward, partly due to the result of a car shortage, driven by high demand for used cars and supply chain disruptions, as well as a rebound in travel.
In a quick turnaround due to high demand for rental cars, Hertz officially emerged from bankruptcy on June 30, which allowed it to shed more than $5 billion in debt.
source: Electrek
