Reborn Hertz orders 100 000 Tesla Model 3s
Rising again from the ashes after bankruptcy, international car rental company Hertz has ordered 100 000 Tesla Model 3s to make 20% of its fleet electric and offer the largest EV rental fleet in the US. The Teslas will be available from November in selected cities in the US and Europe. The complete order should be delivered by the end of 2022.
It’s one of the largest EV orders globally yet, and Tesla was probably the only one able to deliver that amount of electric cars that fast, despite the chip shortages. “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, former CEO of Ford and now Interim CEO of Hertz.
Tesla rising beyond one trillion dollars
Tesla, which already delivered 632 521 cars in the first three quarters of 2021, targets +750 000 vehicles to be delivered in 2021. It seems it will win with its eyes closed. According to Elon Musk, the Hertz deal will be paid at the ‘full price’ and is said to be estimated at $4,2 billion (€3,6 billion).
The announcement of the deal made Tesla’s value rise beyond 1 trillion dollars on Monday at the Stock Exchange. So far, only five companies preceded in rounding that cape: Apple, Microsoft, Saudi Aramco, Amazon, and Google’s parent company Alphabet.
Hertz customers will get access to Tesla’s Supercharger +3 000 stations network for fast charging. In a press release, Hertz says it plans to roll out itself “a combination of Level 2 and DC fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023.”
A Hertz spokesperson told Car and Driver that the Tesla’s will be available at “a rate similar to our premium and luxury vehicles,” while offering “a differentiated and premium rental experience.”
In the Hertz app, there will be a specific online booking process for EVs. Other manufacturers’ EVs will complement the Hertz fleet in time, a spokesman told NBC News.
An early victim of the pandemic
Hertz Corporation, a subsidiary of Hertz Global Holdings, operates the Hertz, Dollar, and Thrifty car rental brands worldwide. In May 2020, it had to file for bankruptcy in full corona crisis as car rental activities globally came to a halt.
Before the crisis, it managed a global fleet of about 650 000 vehicles. By August 2020, the second-hand car market prices started to rise again after a historic low, and Hertz managed to sell 200 000 cars of its fleet in the second half of the year.
Rising like a phoenix from the ashes
In June 2021, Hertz officially emerged from bankruptcy with a group of investors led by Knighthead Capital Management and Certares Management. They provided the 103-year-old company with $5,9 billion (€5 billion) in fresh capital.
Rising like a phoenix from the ashes, it allowed the company to shed more than $5 billion in debt, including all the cumulated debt from Hertz Europe, according to The New York Times.
It also got access to $10 billion of loans and credit lines, enabling it to modernize its fleet just when rental prices started to skyrocket after people massively began to travel again after being ‘locked up’ for months at home.