The rental car company Hertz placed a huge order for 100,000 Tesla electric vehicles, according to Bloomberg News. American firm recently emerged from bankruptcy after almost one and a half years.
The rental car company Hertz placed a huge order for 100,000 Tesla electric vehicles, according to Bloomberg News. American firm recently emerged from bankruptcy after almost one and a half years. Hefty Tesla order will be the first step to electrifying its rental-car fleet.
Early in the coronavirus pandemic last year, Hertz filed for bankruptcy protection, it was drowning in $18 billion in debt. Thanks to the bounce back in the car rental market, it is returning as a much stronger company to tackle the electrification process it needs to go through. Hertz also filed paperwork with the SEC for an initial public offering this month. The company will raise additional cash with the IPO, in order to fund rental renewals and reorganization costs it has to deal with in the post-pandemic period. A big part of that cash will be used to buy thousands of Teslas, recent reports showed.
Largest Tesla Order Ever
Hertz will spend more than $4.2 billion for the 100,000 Teslas it will purchase. It is the single largest order ever for electric vehicles. Tesla EVs will be delivered over the next 14 months, most of them will be the mid-range electric sedan Model 3. First Teslas will be available to rent starting as soon as next month. Rental customers will have access to Tesla’s Supercharger network in the United States and Europe, Hertz is also investing in a private charging station network for its own.
American rental company will eventually electrify its all rental fleet. 100,000 Teslas is just the beginning, almost all of Hertz’s half-million cars and trucks will be fully electric in the near future.