Hertz Rental Car Co. Orders 100,000 Tesla EVs

The rental-car service says they will have North America’s largest rental-EV fleet by the end of next year.

IW Staff

In the business world’s latest embrace of electric vehicles, Hertz Co. announced October 25 it had ordered 100,000 electric cars by 2022 from Tesla Motors for its fleet of rental vehicles and would install EV charging infrastructure at its locations around the world.

Hertz interim CEO Mark Fields said the order would give his company the largest fleet of EV rental vehicles in North America.

“Electric vehicles are mainstream now,” said Fields, noting that the vehicles are in demand among customers and vowing Hertz would “lead the way.” He said the Tesla’s Model 3 would be available at some of Hertz’s locations in major U.S. markets and some cities in Europe.

According to a company statement, Tesla’s Model 3 vehicles will make up 20% of Hertz’s global fleet once the order is filled by the end of next year. That’s barring any unforeseen disruptions that might be caused by semiconductor shortages, Hertz said.

Tesla announced last week it hit its first-ever 1 million-unit annual production rate in the third quarter thanks to increased production at the company’s plant in Shanghai, but supply difficulties are driving longer backlogs and customer wait times.

Hertz is emerging from difficult times. The rental-car company filed bankruptcy amid the slump in travel caused by the coronavirus and emerged from bankruptcy reorganization in June this year. In an interview with the Associated Press, Fields declined to say how much Hertz was spending for the cars, but asserted the company has a healthy balance sheet.