Tesla share prices surge after Hertz makes a purchase order for 100,000 Tesla EV

By: Ruchi Gupta
Ruchi Gupta
Ruchi takes fitness and maintaining a healthy lifestyle very seriously. During her spare time, she enjoys swimming, running, and… read more.
on Oct 25, 2021
Updated: Oct 26, 2021
  • Hertz Global to buy 100,000 Tesla EV.
  • Tesla share prices are up 5% on Monday morning.
  • No financial terms of the purchase agreement have been provided just yet.

Hertz Global Holdings Inc (OTCMKTS: HTZZ) has made a purchase order for 100,000 Tesla EV. The company has told Tesla Inc (NASDAQ: TSLA) that it wants the cars by the end of next year. This order is part of Hertz’s plan to electrify 20% of its global fleet. 

Hertz said that its customers would soon have the option of renting a Tesla at airports and other different locations in some European cities and the major markets in the United States. 

The Electrifying of its Global Fleet

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This current purchase order will mean that electric vehicles will now make up over 20% of Hertz’s global. The company confirmed this earlier this week. The company said that it first incorporated electric vehicles into its global fleet around 2011. 

Tesla shares shot up to around 4% because of this order. In addition, Hertz Global said that it saw itself on a significant stock exchange very soon. The company also noted that it was going to install several EV chargers in its locations of operation. The company said the installations would be in the thousands. 

Those looking to rent the Model 3 will have the option of charging their Tesla at 3,000 different supercharging locations spread across Europe and the United States. 

Company’s Statements 

The company’s interim chief executive, Mark Fields, said that electric cars have become mainstream. However, he claimed that it’s only just started rising in worldwide interest and demand. He said:

Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest

Mark Fields, who once served as Ford Motor Chief Executive Officer, took up Hertz’s Chief Executive role earlier this month. 

The company also confirmed that it’s expecting to install DC and level 2 fast-charging sites in around 65 markets before the close of 2022. When 2023 is done, the company wants to have reached over 100 markets.

The financial obligations of the agreement haven’t been disclosed by both parties just yet. However, such bulk purchase orders usually attract some discounts the buyer can look forward to.

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