Tesla becomes first $1tn car firm as Hertz orders 100,000 Model 3s
Deal worth around £3bn means company will have largest rental fleet of electric cars in North America
Hertz will have the largest EV rental fleet in North America after the purchase of 100,000 Tesla Model 3s in a deal worth $4.2 billion (£3bn).
The vehicle rental firm will also install “thousands” of EV chargers throughout its location network.
The move means 20% of the company’s rental fleet will be battery electric by the end of 2022.
The investment by Hertz meant Tesla became the first car manufacturer to reach a $1 trillion (£725bn) valuation on Monday, with shares in the company rising by 12.6%.
It also becomes one of only five companies globally that are currently trading above this valuation milestone.
"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."
Hertz says it will offer a “premium and differentiated rental experience” with its Tesla cars, including digital guidance for customers about EVs and an expedited rental booking process set to arrive in the near future.
It says that 40% of its US customers are likely to consider an EV when next renting a vehicle, due to a 200% global rise in sales of electrified models.