26 Oct 21

Hertz orders 100,000 Tesla

Hertz orders 100,000 Tesla.

Deal marks a significant EV move in rental car industry 

The deal for 100,000 EVs between Hertz and Tesla kicked up Tesla's shares and sent a clear signal to the rental car industry to shift to EVs. 

Hertz appears to be the only major rental car company that has demonstrated such a substantial commitment to carbon neutrality so far. The vast order for Tesla EVs might trigger a similar move by competitors, Avis Budget Group and Enterprise Holdings. Between them, these three companies own the majority of car rental agencies in international airports. 

Millions of new orders for Tesla

Hertz shows clear signs of fleet electrification after a restructuring led by private equity investors and former Ford CEO Mark Fields as interim-CEO. According to CNBC, Hertz invested more than $4 billion in EVs; it is the first rental car company to add Tesla into its fleet. The deal also bolsters the global manufacturing operations of Tesla. 

The rental car industry purchases 1.5-2 million cars annually. After the deal, Tesla reached $1 trillion in market capitalization on Monday. 

Image: Shutterstock

Authored by: Mufit Yilmaz Gokmen