Hertz Orders 100,000 Teslas, The Largest Purchase of Electric Vehicles Ever
The EV revolution is here, courtesy of a recently bankrupt rental car company
Who would have guessed the greatest comeback story of the pandemic would be Hertz? The rental car company, which dates back to 1918, recently climbed out of a bankruptcy that resulted from the pandemic’s economic downturn. Now, they’re on the offensive; Hertz announced it is ordering 100,000 Teslas, which Bloomberg reports is “the single largest purchase ever for electric vehicles.” Ever.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said in a press release. “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.”
According to Hertz, customers will be able to rent Tesla Model 3 vehicles beginning in early November, and the rental will include the automaker’s network of fast-charging Supercharger stations. The rental company’s commitment to electrification doesn’t end with EVs, however, as they also announced they will be installing “thousands of chargers throughout its location network.”
How was Hertz able to go so quickly from bankruptcy to leading the industry in a new direction? As Bloomberg explains, it comes down to the new ownership.
“The electrification plan, which eventually will encompass almost all of Hertz’s half-million cars and trucks worldwide, is the company’s first big initiative since emerging from bankruptcy in June,” the outlet writes. “And it signals that Hertz’s new owners, Knighthead Capital Management and Certares Management, are intent on shaking up an industry dominated by a handful of large players who are typically slow to change.”
This isn’t a slow ramp-up. Hertz says the order of 100,000 vehicles from Elon Musk’s company will be complete by the end of 2022 (for perspective, Tesla made roughly 624,500 vehicles in the first nine months of 2021). And it’s not a cheap one, either — along with the vehicles and charging stations, Hertz is also paying Tom Brady to promote the new EV fleet.
Let’s go, indeed.
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