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Each passing day Tesla makes a definitive move in consolidating it's position as the world's most valued automaker.

Hertz Orders 100,000 Teslas in Rental-Market Shake-Up


Hertz Global Holdings Inc., placed an order for 100,000 Teslas in the first step of an ambitious plan to electrify its rental-car fleet.

The cars will be delivered over the next 14 months, and Tesla Inc.‘s Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November, the rental company said in a statement. Customers will have access to Tesla’s network of superchargers, and Hertz is also building its own charging infrastructure.

It’s the single-largest purchase ever for electric vehicles, or EVs, and represents about $4.2 billion of revenue for Tesla, according to people familiar with the matter who declined to be identified because the information is private.

“How do we democratize access to electric vehicles? That’s a very important part of our strategy,” Mark Fields, who joined Hertz as interim chief executive officer on Oct. 6, said in an interview. “Tesla is the only manufacturer that can produce EVs at scale.”

Tesla shares surged as much as 4.8% in premarket trading in New York, bringing the automaker closer to a $1 trillion valuation. There was no early movement in Hertz, which currently trades over the counter ahead of its relisting on the Nasdaq Stock Market.

By locking up so much of Tesla’s production -- the order is equivalent to about 1/10th of what the automaker can currently produce in a year -- Hertz may box out rivals from copycatting the strategy. Hertz also is breaking with tradition by paying full price for well-appointed cars rather than the typical base-model, heavily discounted sedans that populate rental lots.

It's easy to imagine how Hertz customers would pick EVs and save on fuel costs with the myriad of charging options available in developed markets.

https://www.bloomberg.com/news/artic...arket-shake-up