On Monday October 25th, Hertz announced their intention to purchase 100,000 Teslas, worth an estimated $4.2B to electrify their rental car fleet. The company partnered with Tom Brady to announce the launch.
As you may remember, Hertz nearly went bankrupt earlier in 2021 as the rental car company sold off its fleet in an attempt to stay solvent. Now, the company, on the other side of bankruptcy is betting big on electric vehicles.
With their order from Tesla, Hertz’ rental car fleet will now be 20% electric vehicles globally. Hertz is also investing to install thousands of EV chargers nationwide. Hertz customers that rent a Tesla Model 3 will have access to Tesla’s supercharging network, however Tesla Supercharger Idle Fees are not included in Hertz rental car payments.
Hertz first introduced EVs in their rental car fleet in 2011. They were the first rental car company to add EVs to their fleet.
The Tesla Model 3 Standard Range Plus costs $41,990. This suggests that Hertz has paid near list price for their 100,000 vehicle order. This doesn’t come as too much of a surprise as we expect all manufacturers will increase their base MSRP for the next model year because of myriad production issues. If Hertz did pay 2021 MSRP for their order that may actually represent a significant discount relative to the price increase we expect to see next year for the Model 3.
Hertz has also now recently announced deals with Carvana and Uber to provide short-term leases of their Tesla fleet as well as to sell them once Hertz is done with them. More on that here: