On Monday, Tesla'smarket valuation surpassed $1 trillion after Hertz announced an "initial purchase" of 100,000 vehicles from the automaker. Hertz has ordered the Tesla Model 3, which starts at roughly $40,000 and is the automaker's most affordable vehicle in its current lineup of electric automobiles (EVs).
The agreement means that beginning in early November, Hertz customers will be able to rent a Tesla jobs Model 3 at Hertz airport and neighborhood facilities across the United States, as well as select cities in Europe, subject to availability. The corporation has yet to divulge the vehicle's rental terms.
Hertz said it would offer “a premium and differentiated rental experience” for customers renting one of its Tesla EVs. This will include, for example, digitized guidance to educate customers about the Model 3 “to get them on their way quickly” and a streamlined EV rental booking process via Hertz’s mobile app.
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Customers renting a Model 3 will also be able to access 3,000 Tesla Supercharger stations across the United States and Europe, as the rental company is deploying thousands of more chargers across its network. Hertz expects to have all 100,000 Tesla Model 3 sedans accessible by the end of 2022, when EVs account for 20% of its global fleet.
However, the business warned that its objectives could be hampered by concerns such as semiconductor chip shortages or other variables, a challenge that has already hampered vehicle production at Tesla and other manufacturers worldwide.
Responding to the deal, Tesla CEO Elon Musk said that Hertz was paying full price for the vehicles, tweeting: “To be clear, cars sold to Hertz have no discount. Same price as to consumers.”
After seeing Tesla’s market value break the $1 trillion barriers, Musk followed up with: “Wild $T1mes!” Hertz CEO Mark Fields commented in a release: “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest.”
Fields added: “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.”
The order is a significant victory for Tesla as it strives to solidify its position as the industry leader in electric vehicles. It may also encourage more drivers to try out EVs for the first time, potentially leading to increased sales for the brand. The agreement is a significant statement of purpose by Hertz, a firm that has just recently emerged from bankruptcy, about a gradual shift to EVs.
