Hertz, the world’s largest rental car company, announced the purchase of 100,000 Tesla Model 3s, which will be accessible to customers in November.
Tesla shares jumped on news of the large $4.2 billion order, and its market valuation surpassed $1 trillion during stock trading Monday, a feat achieved by only a few U.S. companies. On Monday, shares were just two dollars away from exceeding $1,000, a new high for Elon Musk’s firm.
Musk’s net worth skyrocketed in response to the news, breaking the quarter-trillion-dollar record.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields told Reuters.
The news came only months after Hertz emerged from bankruptcy in the wake of the COVID-19 outbreak, which wreaked havoc on the travel and rental vehicle industries in 2020. Hertz announced the expansion of electric vehicle charging infrastructure around the world, in addition to the initial order of 100,000 Teslas by the end of 2022.
Moreover, it is a big boost for Tesla since it allows many potential customers to get a firsthand look at the electric carmaker’s capabilities while travelling.
According to the company, customers can hire a Tesla Model 3 at Hertz airport and neighbourhood stores in major U.S. markets and certain European towns beginning in early November. In addition, it will provide automated guidance to educate clients about electric vehicles. The company wants to offer a faster electric vehicle rental booking procedure through its app in the near future.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said in a statement Monday.
Hertz hopes to save maintenance and refuelling expenses by moving to electric vehicles, and it also plans to construct a network of customer-only chargers. In addition, the company is collaborating with seven-time Super Bowl champion Tom Brady on an advertising campaign promoting its new electric vehicle fleet.
Tesla now has the responsibility of delivering the vehicles.
“There is quite an execution journey ahead of us,” Tesla CFO Zachary Kirkhorn told Reuters.