Hertz announces $4.2 billion deal with Tesla for 100,000 electric vehicles

Hertz announced a new electric vehicle push on Monday that will see the company order 100,000 Teslas by the end of 2022. Bloomberg, the first to report the news, said the deal was worth $4.2 billion. 

Tesla Model 3s will be available to Hertz customers by November across the US and in certain cities in Europe. 

Hertz said it also plans to install thousands of electric car chargers near its locations in US neighborhoods and airports. Right now, there are about 3,000 Tesla supercharging stations throughout the US and Europe for the Tesla Model 3.

Those renting Tesla vehicles will also get “premium and differentiated” services that include special guidance on how electric vehicles work and access to “expedited EV rental booking” in the Hertz app. 

Bloomberg said the company estimates that the large order will be filled over the next 14 months, and by the end, Hertz said Tesla vehicles will make up more than 20% of their global fleet. By the end of 2022, about 65 markets will have some form of Level 2 and DC fast charging, with Hertz planning for it to reach 100 markets by 2023. 

The company noted that many of these plans will be affected by the global supply chain issues and semiconductor chip shortages. 

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields. 

“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.”

Hertz also announced a new deal with NFL star Tom Brady that will involve several advertisements showing how electric vehicle renting will work. 

Brady said he has been driving electric vehicles for years and was excited to take part in the company’s new effort to expand interest in the technology. 

“Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of. I’ve been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious,” Brady said.

Hertz explained that it was moving forward with the large Tesla purchase because an increasing number of US consumers have expressed interest in electric vehicles. 

Multiple auto makers have unveiled plans this year for greater investment in electric vehicles and a Pew study found that 40% of US consumers will think about buying an electric vehicle when they are in the market for a new car. 

Bloomberg noted that Hertz recently emerged from bankruptcy four months ago and views the deal with Tesla as a way for the company to start fresh.