By
staff writer
March 26th, 2024
According to reliable sources, Hertz’s order of 100,000 cars equals about $4.2 billion in revenue for Tesla.
Car rental company Hertz Global Holdings (OTC: HTZZ) has ordered 100,000 Tesla Inc (NASDAQ: TSLA) cars to be delivered by the end of 2022. Hertz placed the order for Tesla cars as the cat rental firm looks to invest in building the largest electric vehicle rental fleet in North America. Hertz Global Holdings announced its new order for 100,000 Tesla cars about four months after the car rental company got out of bankruptcy. Last year, the company filed for bankruptcy at the peak of the pandemic. At the same time, the firm’s discussions with creditors yielded no fruitful results.
Hertz Orders 100,000 Tesla Cars
In a press release published on the 25th of October, Hertz noted that the ordered 100,000 Tesla cars are an “initial order.” That is, the rental company is looking to place an order for more electric vehicles. Hertz interim CEO Mark Fields said EVs have become mainstream. Already, Pew research showed that 40% of US consumers prefer and consider an EV the next time they are buying a car. Globally, EV sales soared 200% in the last year, and the growth is expected to continue. Fields added:
“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 of leisure and business customers around the world.”
In addition, the car rental company said that customers would be able to rent a Tesla Model at Hertz airport beginning in early November. The company also said that the Tesla vehicle would be available at neighborhood locations in the US major markets and some European cities.
Hertz customers who choose to rent the EVs will enjoy a premium experience as there would be digitized guidance, among other features. More interestingly, Hertz is planning to launch an expedited EV rental booking through the Hertz mobile app.
Hertz Order Is the Single-Largest Purchase Ever for EVs
According to reliable sources, Hertz’s order of 100,000 cars equals about $4.2 billion in revenue for Tesla. As the single-largest purchase ever for EVs, Tesla gained 4.3% to $946.32 in premarket trading shortly after Hertz placed the order. In the last 48 hours, TSLA has jumped 5.1%, reaching a record high. The EV company also rallied 7.9% last week, marking a ninth-straight weekly gain. Before the nine straight weeks of gains, TSLA previously recorded its longest 12-week winning streak, which ended in February last year.
In addition to an over 1115% surge in the last twelve months, Tesla stock has also added 28.91% since the year began. TSLA has soared 38.33 in the last three months and rallied nearly 15% over the past month. Additionally, the automaker has pulled in a 4.55% gain in the last five days.