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Hertz Will Buy 100,000 Tesla EVs in the Next Year: Biggest EV Purchase in History

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The rental car company is buying a fleet of Tesla Model 3 EVs along with providing support from a combination of Level 2 and DC fast charging and Tesla’s Supercharger network.

As the electrification of transportation grows it must become more than middle and upper-income early adopters in wealthy suburbs. Delivery vans, school buses, fleets, and even the used car market must become part of the electric vehicle (EV) landscape as we gradually switch away from gasoline-powered internal combustion engine (ICE) vehicles. A step in that direction comes with the announcement that rental-car giant Hertz has placed an order for 100,000 Teslas by the end of 2022. At an estimated $4.2 billion, it is the biggest single order ever for Hertz, and the biggest EV order ever placed.

The announcement pushed Tesla’s valuation above $1 trillion, reaching that mark just 12 years after its initial public offering in 2010.  

"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 a company news 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."

Here are some of the big takeaways from the Telsa and Hertz tie-up:

  • 40 percent of U.S. consumers say they are likely to consider an electric vehicle the next time they are in the market for a new vehicle, according to Pew
  • Global EV sales skyrocketed 200 percent in the last year
  • In August, three US automakers pledged to boost EV sales to 40-50 percent by 2030
  • Beginning in early November and expanding through year-end, customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in U.S. major markets and select cities in Europe
  • Hertz also is installing thousands of chargers throughout its location network. Customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations throughout the U.S. and Europe
  • Hertz will offer a premium and differentiated rental experience for the Tesla EVs
  • This includes digitized guidance to educate customers about the electric vehicle to get them on their way quickly and coming soon, an expedited EV rental booking process through the Hertz mobile app
  • With the current order, EVs will comprise more than 20 percent of Hertz global fleet
  • The Tesla fleet is expected to 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
  • Separately Uber announced that Hertz will make up to 50,000 fully electric Teslas available for drivers to rent by 2023, exclusively for drivers using the Uber network in the US
  • Starting November 1, Uber drivers can rent Teslas through Hertz’s rental program in Los Angeles, San Francisco, San Diego, and Washington, DC, with a nationwide expansion in the following weeks
  • For Uber drivers with at least a 4.7-star rating, Tesla rentals will start at $334 a week and fall to $299 or lower as the program gets underway. This includes insurance and maintenance
  • Uber drivers will have access to the Tesla Supercharger network
  • Research shows that when rideshare drivers go electric, they realize 3 to 4 times greater emissions savings than average car owners

Uber said in its news release that, “While this partnership is a step forward to advance electrification on the Uber platform, it’s important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle. This is a critical challenge that we all must continue tackling together with government leaders through smart policy to bring the cost of EV ownership in line with or below gas-powered cars.”

Kevin Clemens is a Senior Editor with Battery Technology.

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