Tesla Surpasses $1 Trillion Value After Hertz Orders 100,000 Of Its EVs
Tesla joins an elite group of trillion dollar companies such as Amazon, Apple and Facebook as Hertz announces order for 100,000 Teslasby Isaac Atienza, on
Rental car company Hertz was in pretty bad shape in 2020, but things have now turned for the better. The company exited bankruptcy earlier this year, and thanks to a massive order of 100,000 Teslas, both companies stock prices soared, pushing Tesla’s company value at more than $1 trillion.
Hertz says that its "initial order" of 100,000 Teslas by 2022 puts the company on track to become one of the largest players in the electric vehicle (EV) rental space. The deal is estimated to be worth $4.2 billion according to Bloomberg, and this will pave the way for Hertz to have "the largest EV rental fleet in North America and one of the largest in the world".
The model that will initially be available for rent will be the Tesla Model 3, and it will be available as soon as early November at various Hertz airports and neighborhoods in major U.S. locations as well as select European cities. Hertz expects that its fleet of Teslas will be available in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023.
Unfortunately, Hertz also says that this expansion timeline does not consider factors that are beyond the company’s control, such as the ongoing semiconductor shortage and other constraints.
Charging also shouldn’t be an issue for Hertz’s customers, because they will also have access to 3,000 Tesla supercharging stations in the U.S. and Europe. Additionally, Hertz will also install "thousands of chargers throughout its location network", which will be composed of a mix of Level 2 and DC fast chargers.
With this massive order, 20 percent of Hertz’s fleet is now composed of EVs whilst also benefitting from the low maintenance costs that are only possible in a vehicle without an internal combustion engine (ICE).
As the news broke out, the share prices of both companies increased on Monday. Tesla’s stock value, in particular, closed at $1,024.86, which represents a massive 12.66 percent gain. This pushed the company’s value past the $1 trillion mark, and it’s also the first time that the company’s stock prices went past $1,000.
To promote Hertz’s brand spanking new fleet of Teslas, the company collaborated with seven-time Super Bowl champion and entrepreneur Tom Brady, to showcase how it is "making EV rentals fast, seamless and more accessible".