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News Article

Hertz to Buy 100,000 Tesla Cars in Record-Breaking EV Purchase

By Antonio Gozain | Tue, 10/26/2021 - 14:18

Hertz placed an order for 100,000 Tesla Model 3 sedans, informed the car-rental company through a press release. The transaction is set to become the largest single purchase of electric vehicles (EV) in history, reported Bloomberg News.

"EVs are now mainstream, and we have only just begun to see rising global demand and interest. 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,” said Mark Fields, interim CEO, Hertz.

The vehicles will be delivered over the next 14 months and, beginning in November, will be available for rental in Hertz’s subsidiaries across the US major markets and select cities across the EU. Tesla Model 3 became the most sold new vehicle in the Europe in September, with 24,600 units sold, surpassing the 18,300 Renault Clio sold, according to Jato Dynamics, which highlighted that “this is the first time that an EV has dominated the market and also the first time for a vehicle produced outside of Europe.”

Hertz became an early victim of the pandemic when it declared bankruptcy on May 22, 2020. Thirteen months later, on July 1, 2021, the car-rental company revived and says it is prepared to lead the way in the sector. Hertz is also installing “thousands of chargers” throughout its network to increase its clients’ access to Tesla supercharging stations. Once the 100,000 Tesla Model 3 cars are delivered, EVs will comprise over 20 percent of Hertz’s global fleet, said the company.

Tesla: The New Trillion-Dollar Company

Tesla’s stocks rallied 12.7 percent last Monday, Oct. 26, 2021, following the news of the record purchase and positive 3Q21 results. During the quarter, Tesla delivered 241,300 vehicles across the world despite supply chain disruptions and semiconductors shortages that have hit the entire industry.

With the automaker’s stock at a record high, close of US$1,024.86, the company reached the US$1.01 trillion value mark, becoming the second fastest to do it in history (18 years from its foundation), just behind Facebook, which achieved the milestone in last July, 17 years after its creation.

Despite EVs still lacking enough infrastructure to thrive in Mexico, Tesla recently opened its fourth showroom in the country. The store, which opened in Merida, Yucatan, joined the two located in Mexico City (Masaryk and Insurgentes Sur) and the one located in Guadalajara, Jalisco.

The data used in this article was sourced from:  
Hertz, Bloomberg News, Jato Dynamics, Reuters
Antonio Gozain Antonio Gozain Journalist and Industry Analyst