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Hertz is ordering 100,000 Teslas in the largest electric-vehicle purchase ever

Business Insider logo Business Insider 10/25/2021 ama@businessinsider.com (Alexandra Ma,Tim Levin)
The Tesla Model 3. Tesla © Provided by Business Insider The Tesla Model 3. Tesla
  • Hertz is buying 100,000 Tesla vehicles, the car-rental firm announced Monday.
  • It's potentially the largest ever single purchase of electric vehicles, Bloomberg estimates.
  • Tesla shares surged in early trading following the announcement.

Hertz has placed an order for 100,000 for Teslas, Bloomberg News first reported Monday. Hertz later confirmed the news in a press release.

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It is the largest ever single purchase of electric vehicles ever, Bloomberg News said.

The cars will be delivered over the next 14 months, with Tesla Model 3 sedans set to be available for rental in the US and Europe. Hertz also said it will invest in charging infrastructure to support the fleet.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," Hertz's interim CEO, Mark Fields, said in a press release. "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 order is a big boon for Tesla. Although it has drastically accelerated output in recent years, the company still sells a tiny amount of vehicles compared with giants like Toyota and General Motors. In 2020, the automaker shipped just shy of 500,000 vehicles worldwide. As recently as 2017, Tesla delivered around 100,000 vehicles in total.

Tom Brady will star in an upcoming commercial touting the new cars, Hertz said.

Tesla stock rose 4.3% in pre-market trading following the announcement.

Monday's announcement comes on the heels of Hertz's bankruptcy during the COVID-19 pandemic. The company has since emerged with new funding and newfound investor interest as a so-called meme stock.

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