Hertz Orders 100,000 Tesla Cars As It Moves To Rapidly Expand EV Rental Fleet: News

It's quite a shift from where Hertz was just over a year ago

Hertz — Tesla purchase deal (2)
Hertz’ Monday announcement will add billions to Tesla’s bottom line over the next several months. (Images: Hertz)

Customers should find a Tesla Model 3 to rent at some locations next month.

After navigating bankruptcy last year in the wake of the COVID-19 pandemic, Hertz has rebounded as both car and travel demand pick up this year. Now, the rental company announced an order for some 100,000 Tesla cars — the largest single purchase of EVs ever made, per Bloomberg. Hertz says in its Monday statement that customers will be able to rent Model 3s at some U.S. locations starting next month. From there, it will continue to roll out more cars throughout the U.S. and Europe over the next fourteen months.

As part of the deal, those who choose to rent a Tesla Model 3 through the Hertz app will have access to the manufactuer’s growing Supercharger network. Hertz will also install “thousands” of Level 2 and DC fast-charging stations in 65 cities by the end of 2022. That number could expand to 100 cities in 2023, depending on the prevailing conditions with ongoing supply shortages. Customers who rent a Model 3 before February 1, 2023, Hertz said, will get free charging through Tesla’s network.

Hertz — Tesla Model 3 purchase deal
The Tesla Model 3 (and its Model Y sibling) comprise the lion’s share of Tesla’s explosive sales growth in 2021. (Image: Tesla)

The purchase brings in billions for Tesla

The deal amounts to $4.2 billion in revenue for Tesla, according to people familiar with the order. It’s unclear whether all 100,000 cars will be Tesla Model 3s, though the rental firm made no mention of the Model Y, Model X or Model S. Mark Fields, former Ford Motor Company CEO who now serves as Hertz’s interim chief executive, said in an interview that “Tesla is the only manufacturer that can produce EVs at scale.”

The move will make EVs about 20% of the total Hertz rental fleet, and will lock up a substantial amount of Tesla’s production output over the next year. Side note: If you’re encountering long waits to order a Tesla — Model 3 Long Range orders currently carry “December” delivery dates — this could be part of the reason why. Model Y Long Range orders are currently pushed out through May 2022.