Hertz CEO says his record-breaking $4.2 billion Tesla buy was inspired by electric vehicles going 'mainstream' as consumer demand for EVs rises

Morning Brew spoke to Mark Fields, interim CEO of Hertz Interim, about the company's recent purchase of an electric vehicle.
The bankrupt car rental company had announced Monday that it purchased 100,000 Teslas for $4.2 Billion.

Fields stated that electric vehicles are mainstream and that there is growing global interest in them.

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Mark Fields, interim CEO of Hertz Interim, explains why the bankrupt car rental agency decided to go electric.

Bloomberg reported that the company placed a $4.2 million order for 100,000 Teslas, making it the largest single purchase of electric cars ever. Fields said that the record-breaking purchase was partly due to "a combination data and mindset" during a Thursday interview with Morning Brew.

Morning Brew's Fields stated that he believes there will be around 100 EV models in the market within the next 12 to 36 month. This combination of customer intention or predisposition rising and the products are coming is what Fields told Morning Brew.

Fields stated that he bought Teslas specifically because of their production scale, but he also noted that Hertz wants to eventually work with all EV automakers and have strategic conversations with them. He spoke to Morning Brew.

The press release states that the Teslas will be made available in the US and Europe in the next 14-months. Hertz will supply 50,000 cars to Uber drivers as part of the agreement. This will allow more people to experience the thrill of riding in a Tesla. The announcement led to a 4.3% increase in Tesla stock prices pre-market.

Fields stated that electric vehicles have become mainstream and that there is growing global interest in them. "The new Hertz will lead the way in mobility, with the largest EV rental fleet North America, and a commitment that we will grow our fleet and offer the best rental and charging experience for business and leisure customers all over the globe."

Fields suggested that Hertz might eventually have his entire fleet of EVs. Morning Brew was not prepared to discuss the matter publicly. According to the interview, he stated that Hertz is committed to doing the right things for the environment and that their plans will evolve over time when it comes to EVs.

Fields stated that he hopes more people will purchase electric cars. Morning Brew reports that Fields believes that greater consumer access will encourage more buyers to buy them. Morning Brew has learned that research shows that if a person rides or drives in an EV, it is 3 to 4 times more likely that they will purchase one.

He stated that "it serves two purposes for us: it helps Tesla (because they drive Teslas), but it also helps us achieve our overall goal of making sure we accelerate EV adoption and sustainable transport across the globe."

According to the International Energy Agency's Global EV Data Explorer, more than 10,000,000 electric vehicles were in use worldwide in 2020. 1.75 million of these came from the US. According to Treehugger, the Tesla Model 3 was the most-sold EV in 2020 with more than 95,000 sales.