Hertz ordering 100,000 Teslas to electrify rental fleet
Hertz CEO Mark Fields is former CEO of Ford
Hertz has placed an order for 100,000 Tesla Model 3 sedans to add to its global fleet, according to a new report that sent Tesla shares sharply higher in premarket trading Monday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 342.03 | -3.97 | -1.15% |
The Model 3 is Tesla's lowest-priced vehicle. (Tesla)
The rental giant announced that it would begin offering the vehicles for rent at select airport locations this November and receive all of them by the end of 2022.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HTZ | HERTZ GLOBAL | 3.66 | -0.34 | -8.50% |
"Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields, who is the former CEO of Tesla competitor Ford.
Former Ford Motors CEO Mark Fields visits "Maria Bartiromo's Wall Street" at FOX Business Network Studios on Oct. 24, 2019 in New York City. (Photo by John Lamparski/Getty Images)
"The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world."
Hertz has teamed up with Tom Brady on a "Hertz, Let’s Go!" advertising campaign that will feature the seven-time Super Bowl champ going through the process of renting a Tesla from Hertz.
NFL quarterback Tom Brady will feature in an ad campaign about Hertz's Tesla rentals. (Hertz)
Tesla builds the Model 3 at factories in California and Shanghai and delivered 232,025 units of it and the related Model Y compact SUV during the third quarter of 2021.
The news about the Hertz deal comes two days after Tesla raised the base retail price of the Model 3 to $43,990 in the U.S. on Saturday, which would value the order at nearly $4.4 billion.
Renters will have access to Tesla's Supercharger network and Hertz plans to build out its own charging infrastructure to support the vehicles.
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Hertz has previously offered a small number of Model 3's for rent through its Dream Collection rentals program.