Hertz orders 100,000 Teslas to electrify rental fleet, following bankruptcy

Hertz, fresh from reorganizations and bankruptcy, is making some big changes. On Monday, the rental car company announced it placed an order for 100,000 new Tesla EVs in a move to electrify its fleet. Not only will customers be able to choose a Model 3 when renting from Hertz, but the rental period will come with access to Tesla’s Supercharger network, too. On top of that, Hertz will also begin creating its own EV charging station infrastructure, and seven-time Super Bowl champion Tom Brady will front an EV-themed marketing campaign.

And it sounds like this fleet of Teslas is just the beginning: The 100,000 cars is an “initial order,” Hertz said. The move could help the rental company pull ahead of rivals in the EV space for the time being. Tesla doesn’t build millions of vehicles per year (it delivered 241,000 cars in the third quarter of this year), so it may be difficult for another company to counter with its own order, given Tesla’s current production numbers. That’s especially true with the current supply-chain crunch and semiconductor chip shortage.

Hertz isn’t simply buying a ton of Teslas and thinking that will solve its problems, having come out of bankruptcy in June with new owners. The company said its new outlook will focus on not only rental vehicles, but chart a new course for “travel, mobility and the auto industry.” These facets will help Hertz create its “modern mobility ecosystem,” it said in the announcement. The company did not disclose the terms of its order with Tesla, or how it was financing the multibillion-dollar deal.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said in a statement. “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 first Model 3 EVs will enter Hertz’s fleet next month and will be available to rent in the US and Europe. Once the 100,000 EVs are on the road, by the end of next year, Hertz said EVs will make up 20% of its global fleet.