Total value? Around $4.4 billion.
Over one year ago, rental car company Hertz filed for Chapter 11 bankruptcy due to a number of economic factors, such as Covid-forced shutdowns. By last November, the company announced a new subscription plan as part of larger efforts to fight its way out of financial ruin. Those efforts continue to pay off. Hertz has announced it's placed an order for 100,000 Teslas, specifically the Model 3.
The estimated $4.4 billion deal calls for these cars to be delivered to the rental company by the end of 2022. Tesla's stock increased by 4.3 percent following the announcement, a new record high. Hertz customers who rent a Model 3 will have full access to Tesla's 3,000 supercharging stations located throughout the US and Europe.
"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields. Tesla cannot be reached for comment but we can confirm this is the biggest order to date for its vehicles. With Hertz now entering the EV segment, it's only a matter of time until rival rental car companies do the same. Whether they'll strike a deal with Tesla or not is remains unknown. Hertz is wasting no time promoting its new deal with Tesla.
It has recruited the one and only, seven-time Super Bowl champion Tom Brady to star in new promotional campaign called "Hertz, Let's Go!" Two new ads will begin running today showing Brady renting, recharging, and driving an EV at a Hertz airport center.
"Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again," said Brady.
Hertz's Model 3 customers will have a "premium and differentiated rental experience" compared to non-EV renters. They'll have access to digitized guidance to help educate them on EVs and, in the near future, a faster EV booking process through the Hertz mobile app. The company aims to have over 20 percent of its global feet be comprised of EVs by the time its Tesla order of fulfilled. A combination of Level 2 and DC fast charging in 65 markets will happen by the end of next year and over 100 markets by the end of 2023.