Hertz Global Holdings, Inc. has placed an order for 100,000 Tesla’s. The rental car company’s order represents the largest single EV order in history and will generate around $4.2 billion for Tesla.
Hertz says this purchase is the first big step to electrifying their global fleet, which is around half a million vehicles. This order with Tesla is for the company’s Model 3 and will span both North America and Europe. Deliveries of the 100,000 Model 3’s is expected to happen over the next 14 months. It is worth noting that supply of the Model 3 has already been tight. Hertz says the Model 3’s will end up in most major markets in the U.S. and Europe.
The Model 3’s tight supply is likely one reason Hertz appears to be paying list prices for the Model 3’s. Typically automakers grant discounts to rental car companies for bulk purchases.
Hertz customers who rent Model 3’s will be entitled to charge them at Tesla’s own Superchargers. The company is also establishing its own charging network as part of its EV transition.
Hertz filed for bankruptcy in May 2020 amid the global COVID-19 pandemic. The company has since seen a rapid turnaround as demand for rental cars has surged in recent months. Hertz was able to emerge from bankruptcy back on June 30th and is now owned by a group of capital management firms. Today’s EV purchase appears to be the first major strategy shift from Hertz’s new owners. The rental car company also recently announced former Ford CEO Mark Fields as the company’s interim CEO.
Alongside today’s Tesla purchase announcement, Hertz is also launching a new marketing campaign entitled “Let’s go.” The campaign features star NFL quarterback Tom Brady touting the company’s new Tesla fleet.