Hertz stated in its announcement that it plans to finish its Tesla Model 3 small car purchases by the end of 2022. It also announced that it will build its own electric vehicle charging network as part of its plan to build North America’s largest rental fleet of electric vehicles.
Teslas are already arriving at Hertz locations, according to him, and should be available for rental in November.
Hertz is spending an undisclosed amount on the order, according to Fields. After emerging from bankruptcy protection in June, he claimed the company now has sufficient capital and a solid balance sheet.
The order was not given a price, but it is expected to be in the $4 billion range because each Model 3 starts at roughly $40,000. The contract is at the top of the list of single-company electric vehicle orders. Rivian, a startup producer of electric vans, pickup vehicles, and SUVs, received an order from Amazon in 2019 for 100,000 electric delivery vans. Rivian has Amazon as a backer.
Tesla’s stock jumped over 6% to a new high of $961.16 shortly after the market opened on Monday.
Fields stated in an interview with reporters that he believes electric vehicles are becoming more mainstream and that Hertz plans to be a major provider of EVs to rental consumers. He cited polls demonstrating that consumer interest in electric vehicles has skyrocketed in the last five years.
“More people are willing to give it a shot,” he said. “It’s quite beautiful.”
Hertz, based in Estero, Florida, is in talks with other automakers about expanding its electric vehicle fleet as more models hit the market, according to Fields.
Hertz is also developing its own charging infrastructure. By the end of 2022, Fields expects to have 3,000 chargers in 65 places around the United States, with 4,000 by the end of 2023. Hertz locales, such as airports, will host many of the stations, while others will be in suburban regions, he said.
Customers will also be able to pay to use Tesla’s huge charging network, according to Fields. The company has a worldwide network of roughly 25,000 chargers.
Fields refused to specify how much the Teslas will cost to rent or whether they will be more expensive for customers than gas-powered cars.
In May 2020, two months after the coronavirus spread across the country, Hertz Global Holdings Inc. filed for bankruptcy protection. It was one of the first large firms to succumb to the pandemic as diseases spread throughout the globe, halting travel for both businesses and holidaymakers.
Fields, a former CEO of Ford Motor Company, was chosen interim CEO of Hertz in October.
