Hertz recently made a massive purchase from Tesla, by buying around 50,000 Tesla vehicles which are to be delivered by 2022. On Monday the company announced that they will be purchasing 100,000 Model 3 sedans and the deal was closed at $4.3 billion without any discounts. Additionally Uber also formed a partnership with Hertz, where Uber drivers are allowed to rent Tesla cars by 2023.
Interim Chief Executive of Hertz, Mark Fields said, “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest. 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.”
Interestingly it was reported that Hertz will not have the vehicles in Sweden, despite being a Sweden-based rental company. Hertz Sweden will act independently and will decide later on whether they will be having Tesla vehicles or not. In Sweden, the current star of their fleet is Polestar 2. Also, as the company is owned by Polestar’s parent company, Volvo cars it would make sense to use polestar vehicles in the country.
After the order, Tesla’s market share value crossed $1 trillion. While Hertz and Tesla’s shares were up after the announcement, Uber shares were down by 1.4%. In addition to the partnership with Uber, Hertz also partnered with used car dealer Carvana. For Uber drivers, the car rentals will be provided at $334 per week, which will be lowered eventually as the program expands in the coming years. The models are most likely to be Model 3 vehicles and the rent costs include maintenance and insurance. By 2030 the company will use EVs in the US & Europe and will expand to other countries by 2040.