The change in the automotive sector continues unabated. Although automobile companies have reduced production for many reasons, including the pandemic and the chip crisis, we see that electric vehicles are becoming popular in this process. Even world-famous car rental companies have rolled up their sleeves to create their entire fleets from electric vehicles from now on.
Car rental company Hertz orders 100,000 Tesla Model 3
Car rental company Hertz, which has been keeping up with the big changes in the automotive industry recently, announced that it has ordered 100 thousand Tesla Model 3 to use in its fleet. Shortly after this announcement, Tesla’s market capitalization increased by 4.3 percent to over $1 trillion.
According to data released by Bloomberg, Hertz signed the largest one-time electric car order ever with this deal. Tesla is expected to generate $4.2 billion in revenue from this deal.
The car rental giant also announced that all customers who rent a car from its fleet will use 3,000 Tesla Supercharger stations in the USA and Europe. In addition to these, the company has started working to establish thousands of charging stations for support purposes.
Hertz aims to have all of the 100,000 Tesla Model 3 vehicles ordered by the end of 2022. However, 20 percent of the cars in the fleet of the car rental giant will consist of electric vehicles.
The company’s interim CEO, Mark Fields, also used the following statements at the press conference on the subject:
Electric vehicles have now become mainstream. We have decided to take action against the increasing global demand and interest. The new Hertz will have the largest electric vehicle (EV) rental fleet in North America, and we will continue to grow our EV fleet every day and lead the way, committed to providing the best rental experience to our customers around the world.
As it will be remembered, the car rental giant announced in May that it went bankrupt with the harsh effect of the pandemic, but it got back on its feet by receiving a large investment of 5.9 billion dollars by Knighthead Capital Management and Certares Management. Finally, the company wants to electrify all of its 500 thousand vehicles in its future plans, and the order of 100 thousand Tesla Model 3 is considered as the first big step on the subject.
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