NewsNational

Actions

Hertz announces purchase of 100,000 Tesla Model 3s

Hertz-Tesla
Posted
and last updated

Car rental company Hertz announced on Monday that it's purchasing 100,000 vehicles from Tesla.

In a news release, the company said consumers would be able to rent a Tesla Model 3 beginning in early November at select U.S. and European locations.

According to the Associated Press, the deal is likely worth around $4 billion, and the purchase of electric vehicles should be completed by 2022.

The company said the move is to address customer demand for EV cars.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields in the press release. "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 added the move also had to do with the shortage of computer chips.

The company said charging stations will be in approximately 65 markets by the end of 2022 and in 100 markets by the end of 2023.

According to the AP, the announcement pushed Tesla's shares to reach $1,024.02, which made the company's value to just over $1 trillion for the first time.