Tesla shares soar as Hertz places estimated $4.4bn order for 100,000 EVs
Tesla has scored its largest ever electric vehicle order with Hertz requesting 100,000 cars as part of plans to electrify its rental fleet.
Tesla’s share price has jumped by 4.53 per cent today and touched a new all time high of $970.84 on the back of the news. In a shakeup for the car rental market Hertz, which exited bankruptcy just four months ago, has announced plans to go green and create the largest EV rental fleet in North America.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields.
“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,” he continued.
The flagship Tesla Model 3, a 4-door sedan that features up to 260-mile driving range on a full charge, will be available to purchase from Hertz outlets across the US and Europe. The car sells for $44,000 making Hertz’s order worth an estimated $4.4bn assuming the Model 3 was ordered.
It comes after research by Pew showed that 40 percent of U.S. consumers say they are likely to consider an electric vehicle the next time they are in the market for a new vehicle.
Global EV sales skyrocketed 200 percent in the last year and could continue to grow following commitments from global automakers to increase sales of electric vehicles.
While Hertz hopes its order will be filled by the end of 2022, Tesla has built up a backlog of unfilled orders amid global supply chain issues. Despite ongoing challenges Tesla delivered a record 241,300 electric cars globally in the third quarter of the year.
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