Hertz has announced the purchase of 100,000 electric vehicles from Tesla, one of the largest battery-powered car purchases in history, and the latest evidence of the U.S.’s growing commitment to electric vehicles. technology. News of the deal sparked a rally in Tesla shares, which pushed the carmaker’s market value above the $ 1 trillion mark for the first time.
Hertz, one of the world’s leading car rental companies, reflects the growing acceptance of electric vehicles among environmentally conscious consumers, rather than petroleum-powered vehicles powered by internal combustion engines.
Mark Fields, Acting CEO of Hertz, told an AP news agency, that Tesla will already be arriving at the company’s premises and will be available for rent from November onwards
Hertz said in a statement that it would complete its procurement of Tesla Model 3 small cars by the end of 2022. He also announced that he would set up his own electric vehicle charging network while working to build North America’s largest electric rental car fleet.
Fields did not disclose how much Hertz spends on the order. But he said the company has enough capital and a healthy balance sheet after it went out of bankruptcy in June.
The value of the deal is likely to be around $ 4 billion, as the base price for each Model 3 is about $ 40,000. . In addition, it is at the top of the list of electric vehicle orders submitted by a single company. In 2019, Amazon ordered 100,000 electric delivery vans from Rivian, a startup that makes electric vans, pickups and SUVs. Amazon is an investor in Rivian.
Hertz’s order pushed Tesla shares up nearly 13 percent to a record closing price of $ 1,024.86, raising the total market value of the world’s most valuable automaker to just over $ 1 trillion. The wealth of the world’s richest man, CEO Elon Musk, rose 11.4 percent to $ 255.8 billion, according to Forbes.
In an interview with AP, Fields made it clear that he believes that electric vehicles are becoming more and more mainstream and that Hertz wants to play a leading role in the rental of electric vehicles. He referred to surveys that show that consumer interest in electric vehicles has increased dramatically over the past five years. “More people are willing to try and buy it, which is quite shocking,” he said.
Hertz is also investing in its own charging network It plans to have 3,000 chargers in 65 locations in the United States by the end of next year and 4,000 by the end of 2023. According to the CEO, many of the locations will be at Hertz bases, such as airports, while others will be located in suburban areas. Customers will also be able to use Tesla’s own large charging network for a fee. The carmaker has a network of about 25,000 chargers worldwide. Fields declined to say how much Hertz would charge for renting Tesla, or whether they would be more expensive for customers than gasoline-powered vehicles.
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