Hertz and Tesla sign an agreement for historic electric cars

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This story was originally published on The guide.

Hertz blocked what is said to be the single largest electric vehicle purchase in history by acquiring 100,000 cars from Tesla. It is the biggest step towards electrification of its global fleet and Bloomberg says the deal should bring Tesla $ 4.2 billion in revenue. A first batch of Model 3s it will be distributed in Hertz hubs in the United States and Europe beginning in early November.

While it hasn’t been specified which Tesla models are part of the deal aside from the Model 3, it wouldn’t be surprising to see a Model Y crossover piece hitting many over time. Rental Teslas will be able to use the manufacturer’s Supercharger network just like consumer cars, adding another benefit for Hertz customers. Even with other players in the electric vehicle industry announcing huge investments in charging infrastructure, Tesla Superchargers are even more widely available in the US and Europe.

Hertz interim CEO Mark Fields said in a press release Monday morning: “Electric vehicles are now widespread and we are just starting to see an increase in global demand and interest. The new Hertz will lead the way as a mobility company, starting with the largest fleet of electric rental vehicles in North America and with a commitment to growing our electric vehicle fleet and providing the best rental and charging experience for the leisure and business customers from all over the world “.

To give an idea of ​​the extent of this agreement by Tesla, the automaker’s third quarter 2021 deliveries totaled 241,300 units. Shares in the automaker were up 4.3% in pre-market trading to kick off the week on the heels of Hertz’s announcement.

You may remember it Hertz filed for bankruptcy in May 2020; was able to get away with securing a $ 5.9 billion investment round led by Knighthead Capital Management and Certares Management. It it has also sold around 200,000 of its 650,000 vehicles to repay creditors. By July of this year, Hertz stock prices had risen to nearly $ 9 per – more than four times higher than the sub-$ 2 prices it faced during its worst crash.

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