Hertz Global Holdings Inc., barely four months out of bankruptcy, said it has placed an order for 100,000 Teslas in the first step of an ambitious plan to electrify its rental-car fleet.
The cars will be delivered over the next 14 months, with Tesla Inc.’s Model 3 sedans available at Hertz locations in major U.S. markets and parts of Europe starting in early November, the rental company said in a statement. Customers will have access to Tesla’s network of 3,000 superchargers, and Hertz said it is also building its own charging infrastructure.
It’s the single-largest EV purchase ever, and represents about $4.2 billion of revenue for Tesla, people familiar with the matter told Bloomberg. While rental companies typically demand big discounts from automakers, the size of the order implies Hertz is paying close to list prices.
News of the deal sparked a surge in Tesla's stock price, giving the automaker a market valuation north of $1 trillion. In Monday Nasdaq trading, the company's shares closed at $1,024.86, up 13 percent, giving the EV maker a market cap of $1.027 trillion.
Earlier this month, Hertz named former Ford chief Mark Fields as interim CEO.
“How do we democratize access to electric vehicles? That’s a very important part of our strategy,” Fields told Bloomberg. “Tesla is the only manufacturer that can produce EVs at scale.”