In the blink of an eye, car rental is now the largest fleet buyer of electric vehicles — and the initiative is underway right now.
Hertz announced today it has placed an initial order of 100,000 Teslas “by the end of 2022,” according to a Hertz news release. With this order, EVs will comprise more than 20% of Hertz’s global fleet.
Beginning in early November and expanding through year end, Hertz customers can rent a Tesla Model 3 at Hertz airport and neighborhood locations in U.S. major markets and select cities in Europe.
Hertz is also planning new EV charging infrastructure across the company's global operations. The rental vehicles will be supported by a combination of Level 2 and DC fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023, Hertz said. In total, customers will have access to 3,000 Tesla supercharging stations throughout the U.S. and Europe.
"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields. "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 Hertz EV initiative will come with a differentiated rental experience for the Tesla EVs, including digitized guidance to educate customers about the electric vehicle. An expedited EV rental booking process through the Hertz mobile app is coming soon.
In early trading, shares of Tesla Inc. climbed toward a new record Monday. Meanwhile, shares of Hertz, still trading as HTZZ on the over-the-counter market, shot up more than 11%, on track for the highest close since the company emerged from bankruptcy on June 30.
Hertz cautioned that “(T)hese ambitions could be affected by factors outside of Hertz's control, such as semiconductor chip shortages or other constraints.”
In addition, Hertz has contracted seven-time Super Bowl champion Tom Brady for commercials to promote Hertz’s EV initiative. Two new ads begin with Brady begin today.
Hertz also recently filed a statement with the SEC for its common stock in preparation of listing on the NASDAQ.