Hertz Orders 100,000 Teslas for Its Rental Fleet

• Tesla will supply Hertz with 100,000 cars before the end of 2022, in the single largest EV order for a rental giant, in what the company called an "initial order."

• Tesla's stock market value rose above $1 trillion for the first time on news of the massive order, one expected to be fulfilled with the help of Berlin and Austin factories.

• Hertz will expand its own charging infrastructure ahead of the deliveries, with Model 3 vehicles expected to be offered in November of this year in the US and Europe ahead of more deliveries through 2022.

In the single-largest EV order for any company, the rental giant Hertz has placed an order for 100,000 Tesla vehicles, in addition to plans to build up its EV charging infrastructure. Hertz is calling the deal an initial order, one that is slated to be completed by the end of 2022. The move means the company will see its rental car holdings swell by a significant number following a pandemic-prompted sell-off last year that saw rental companies shed hundreds of thousands of vehicles.

The purchase, one that will net Tesla several billion dollars, will see the automaker supply the rental chain with Model 3 vehicles—the sole Tesla model mentioned at the moment by both companies—and one that perhaps makes the most sense from a consumer and manufacturing standpoint.

Customers will be able to rent Model 3s in early November 2021, both in the US and in Europe. However, Hertz did not elaborate just how many Model 3s would be available through its locations at this early stage in 2021.

"Today, 40 percent of US consumers say they are likely to consider an electric vehicle the next time they are in the market for a new vehicle, according to Pew. Global EV sales skyrocketed 200 percent in the last year and will likely continue to grow with commitments from global automakers to increase EV sales," Hertz said in a statement. "For example, in August, three US automakers pledged to boost EV sales to 40-50 percent by 2030."

Hertz will roll out a new ad campaign featuring Tom Brady to promote the vehicles for consumers, with the company giving a preview of the TV spots this week.

Hertz indicated that the order itself will mean that 20% of its rental vehicles worldwide will be EVs by the end of 2023, with the company also intending to boost its offerings of Level 2 and DC fast charging.