Tesla becomes first US$1 Trillion car firm as Hertz orders 100,000 Model 3s

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Car rental firm Hertz will offer the largest electric vehicle rental fleet in North America with the purchase of 100,000 Tesla Model 3 cars in a deal worth US$4.2 billion (AUD$5.5 billion).

The company will also install “thousands” of chargers throughout its location network, and the move will see 20% of the company’s rental fleet consist of battery electric vehicles by the end of 2022.

The investment by Hertz meant Tesla became the first car manufacturer to reach a $1 trillion (AUD$1.325 trillion) valuation on Monday, with shares in the company rising by 12.6%. Tesla also becomes one of only four other companies to reach this valuation milestone.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, Hertz interim CEO.

“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.”

Hertz says it will offer a “premium and differentiated rental experience” for its Tesla vehicles, with digital guidance for customers about electric cars, with an expedited rental booking process set to arrive in the near future.

The firm says 40% of its US customer base are likely to consider an EV when next renting a vehicle, due to a 200% global rise in sales of electrified models.

Jack Warrick

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