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buying Hertz Buying 100,000 Teslas in $4.2 Billion Deal, Making EVs 20 Percent of Its Fleet

18:00  25 october  2021
18:00  25 october  2021 Source:   caranddriver.com

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Rental-car giant to start rolling out Tesla Model 3s early next month and will provide customers free charging at Tesla stations through February 2022. © Hertz Rental-car giant to start rolling out Tesla Model 3s early next month and will provide customers free charging at Tesla stations through February 2022.
  • Rental giant Hertz announced this morning that it is ordering 100,000 Tesla Model 3 EVs, giving it "the largest EV rental fleet in North America" and making EVs 20 percent of the Hertz fleet.
  • Hertz promised that customers will start to find Tesla Model 3 cars at some locations in the U.S. and Europe starting in early November. The full 100,000-car order is expected to be fulfilled by the end of 2022.
  • Hertz said it will also install "thousands" of charging stations in its locations, which will supplement Tesla's already expansive Supercharger network, and will set up an expedited app-based booking process for the EVs.

In a major move both for Tesla and the rental-car market, Hertz has announced it has ordered 100,000 Teslas. The rental-car company's $4.2 billion order represents the largest single EV purchase to date, as Bloomberg noted this morning. Tesla Model 3 cars will start appearing in Hertz airport and other rental locations next month, and the cars will continue to roll out across U.S. and Europe locations through the end of 2022.

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Hertz also announced today that customers who rent a Model 3 before February 1, 2022, who use the Tesla charging network will get free charging privileges. The announcement did not specify whether all 100,000 cars will be Model 3s but did not mention other Tesla models.

A big part of this deal, of course, is that Hertz customers will get to use Tesla's expansive Supercharger network, and Hertz also said it will install "thousands" of chargers across the U.S. and Europe. The Hertz plan is to set up Level 2 and DC fast-charging stations in 65 cities by the end of 2022 and more than 100 by the end of 2023, although the rental company alluded to "semiconductor chip shortages or other constraints" as one reason that ambition could be delayed.

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Hertz is also promising faster booking through an EV-specific function on the Hertz app.

The rental-car company first offered EVs in 2011 and started offering the Tesla Model S at airports in California in 2013, but as recently as 2017 Hertz and Enterprise both told Car and Driver that they were cutting their EV fleets because of low demand. One obvious difference between 2017 and today is that the growth of Tesla's Supercharger network makes an EV rental a much more practical proposition.

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