Tesla's Electrifying Growth

Right now, Tesla is probably the only company, which is in a position to deliver 100,000 BEVs in 12 months without impacting other operational targets: GlobalData analyst

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One man’s gain can be another man’s gain too. 

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As consumer interest in electric vehicles (EVs) skyrocket, car rental giant Hertz announced a significant investment to offer the largest EV rental fleet in North America. This includes an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company's global operations, said Hertz in a statement. 

“EVs are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields in a release. Beginning early November and expanding through year end, customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in the US, major markets and select cities in Europe, the release added. 

The deal is worth about $4.2 billion, estimated Wedbush Securities analyst Dan Ives, said a report. With this, Tesla CEO Elon Musk's fortune is ballooning. Tesla shares rose by more than 12 per cent after the announcement, past $1,000 per share, and pushed the company’s valuation to more than $1 trillion.

Celebrating the victory, Elon Musk tweeted, “Wild $T1mes!” 

Explaining the deal, Calum MacRae, automotive analyst at GlobalData, said, “The strategic rationale of the deal comes from both sides. For Hertz, just out of bankruptcy, having Tesla EVs available for rental gives them an USP—almost making them the top choice among people as a rental company. Consumer surveys consistently put Tesla at the top of any future EV buying consideration list. Renters are likely to use the time in Tesla to evaluate the vehicles. Tesla can also receive data from the company that will help them evaluate usage patterns, wear and tear of vehicles, effectiveness of their ADAS systems etc that they normally would not have access to when there are owner-drivers. This data will be ground research for Tesla's planned evolution into a robo-taxi company.” 

“Right now, Tesla is probably the only company, which is in a position to deliver 100,000 BEVs in 12 months without impacting other operational targets. Its Berlin and Austin gigafactories will shortly start operations, giving them considerable capacity headroom. Other original equipment manufacturers ( OEMs) are just ramping up their BEV capacity,” the analyst said, giving insight into the factors that gave Tesla an edge over others.