The Strategist

Hertz car rental chain buys 100,000 Tesla electric cars

10/26/2021 - 06:57

On Monday, US car rental chain Hertz announced that it had agreed with Tesla to supply 100,000 of its electric cars.

Gerard Stolk
Gerard Stolk
This is the largest order in Tesla's history; financial terms of the deal were not disclosed, but, according to media estimates, its total amount could reach $4.2 billion. Electric cars are to be delivered by the end of 2022.

After that, about 20% of Hertz's fleet worldwide will be electric cars - the company now has up to 450,000 vehicles available for rent. The first Tesla electric cars will appear in Hertz rentals in the U.S. and Europe in early November. It plans to have 3,000 electric charging stations in 65 countries by the end of 2022 and 4,000 in 100 countries by the end of 2023.

Hertz has only recently gone through bankruptcy proceedings - in May last year it filed for bankruptcy protection amid accumulated debts and falling demand for rental cars due to the pandemic. As a result, one of the world's oldest rental services, established in 1918, was bought out by a group of investment funds, including Knighthead Capital Management, Certares Opportunities and Apollo Capital Management.

On this purchase of 100,000 electric cars, both Tesla and Hertz shares rose more than 7%. Tesla shares thus reached another record high of $978 per share.