Hertz orders 100,000 Teslas in deal reportedly worth $4.2 billion

Hertz, a rental car company, has ordered 100,000 Teslas as part its ambitious plan to electrify their fleet. Hertz will offer a first batch of Tesla Model 3 sedans for rent in the US and Europe starting in November. This announcement comes months after Hertz declared bankruptcy.
Bloomberg first reported the news about the purchase. It is believed that the deal was the largest ever for electric cars and it is worth $4.2. Tesla generated revenue of $4.2 billion. Pre-market trading saw the automaker's stock rise 4.3 percent following the news. This morning, it was reported that Tesla's Model 3 was the first electric vehicle to reach the top of European monthly sales charts for September. The company posted record sales for its third quarter despite the chip shortages that have impacted the automotive market.

It's been a great month for Tesla

Hertz will allow anyone renting a Tesla to access the network of 3,000 superchargers in the US and Europe. Hertz claims that it plans to add thousands of its own chargers throughout its network.

After the pandemic, Hertz declared bankruptcy in May 2013. Investors led by Certares Management and Knighthead Capital Management refinanced the company which has been around for more than 100 years. Bloomberg reports that Hertz plans to electrify almost all of its approximately 500,000 vehicles and vans. The Tesla order is a significant portion.

Mark Fields, interim CEO of Hertz, stated that electric vehicles have become mainstream and that there is growing global interest in them. Hertz's new CEO Mark Fields stated that Hertz will be a leader in mobility, with the largest EV rental fleet North America. He also pledged to expand the EV fleet and offer the best rental and charging experience for business and leisure customers.

Hertz launched a new advertising campaign featuring Tom Brady to promote the move.

Update at 8:39 AM ET: The headline and story have been updated with Hertz confirmation and additional details.


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