Hertz says it will buy 100,000 electric vehicles from Tesla, one of the largest purchases of battery-powered cars ever. News of the deal pushed the carmaker's market value over the $1 trillion mark for the first time.
In this Tuesday, Nov. 28, 2017 photo a Hertz rental car logo rests on the front of a Hertz location, in Boston. Car rental company Hertz is ordering 100,000 electric vehicles from Tesla. The company says it’s buying the Tesla Model 3s by the end of 2022, and it also will buy electric vehicle chargers. No price was given for the order, but it has to be worth around $4 billion because each Model 3 has a base price of around $40,000.
The purchase by one of the world’s leading rental car companies reflects its confidence that electric vehicles are gaining acceptance with environmentally minded consumers as an alternative to vehicles powered by petroleum-burning internal combustion engines. The Hertz order sent Tesla shares soaring nearly 13% to a record closing price of $1,024.86, and pushed the world’s most valuable automaker’s total market value to just over $1 trillion. The wealth of CEO Elon Musk, the richest person in the world, grew 11.4% to $255.8 billion, according to Forbes.
Fields declined to say how much Hertz will charge to rent the Teslas or whether they would be more expensive for customers than gas-powered vehicles.
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