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Tesla Receives $4.2 Billion EV Order By Hertz

Tesla Inc (NASDAQ:TSLA) has received an order worth $4.2 billion for 100,000 electric cars by rental car company Hertz Global Holdings Inc (OTCMKTS:HTZZ), the single largest on record. With the...

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You're reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on ValueWalk

Tesla Inc (NASDAQ:TSLA) has received an order worth $4.2 billion for 100,000 electric cars by rental car company Hertz Global Holdings Inc (OTCMKTS:HTZZ), the single largest on record. With the announcement, the automotive giant will provide several products including the Model 3.

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Record EV Order

Tesla vehicles will be available for rent through Hertz in major U.S. and European markets as of early November, according to The Verge. This becomes the single biggest EV order on record and will give the rental car firm the chance to bounce back after scaping bankruptcy just over three months ago.

The deal is believed to be worth $4.2 billion, which sent Tesla stock up by 4.3% in pre-market trading.

After Elon Musk’s company reported record sales for the third quarter, “It was also reported this morning that Tesla’s Model 3 became the first electric vehicle to top monthly sales charts in Europe this September,” The Verge informs.

Drivers renting Tesla vehicles through Hertz won’t suffer from range anxiety as they will be able to recharge at more than 3,000 Tesla supercharging stations spread across the U.S. and Europe. Hertz will also reinforce the network with thousands of its own near the rental car company locations.

A Major Role

Tesla will play a key role in Hertz’s comeback, as the latter plans to electrify almost all of its 500,000 vehicles with a significant share of them provided by the automotive giant.

Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz’s interim CEO Mark Fields in a press 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 company had filed for bankruptcy in May 2020 amid the peak of the COVID-19 pandemic, which put a halt to the tourism sector. Hertz has been in the business for over a century and was the subject of a $5.9 rescue investment by Knighthead Capital Management and Certares Management.

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.