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Hertz is back in business following a bankruptcy, and the company is wasting no time getting back in the game. They recently placed a massive order for electric vehicles (EVs) from Tesla. The automaker itself has been on a tear with production despite a global chip shortage.
Here are more details on Hertz's plans with all the Tesla vehicles it ordered.
Hertz ordered an impressive number of Teslas
According to Autoblog, Hertz recently ordered 100,000 Teslas, which is the largest order for electric vehicles ever placed. Hertz hopes to electrify its fleet in the coming years.
The cars will be delivered in batches over the next 14 months. The Tesla vehicles are expected to start popping up in Hertz rental locations as early as this month. Customers will be able to take advantage of Tesla's network of charging stations, and Hertz is also building out its own network.
So if you've been wanting to try out a Tesla but weren't ready to commit to a purchase, this may be your opportunity to get behind the wheel and see what life with an EV is like.
This order is expected to generate a lot of revenue for Tesla
The amount of money involved in this deal is, unsurprisingly, nothing to sneeze at. It's expected to generate around $4.2 billion for Tesla.
Based on that number, it would seem that Tesla may be getting the better end of this bargain. Rental car companies are typically able to negotiate pretty steep discounts from manufacturers, but Hertz doesn't seem to be getting any discounts on the Tesla cars. Judging by the total amount of revenue being quoted, it would seem that they're basically paying full price.
Tesla founder Elon Musk threw things into a tailspin not long ago when he tweeted that the deal with Hertz had not yet been signed, as reported by ABC News. This sent prices for Tesla stock heading south after an initial bump when the deal was made public.
Which Tesla models did Hertz buy?
Consumers looking to rent an EV through Hertz will have the opportunity to try out Tesla's Model 3 sedan. This car will be available throughout the U.S. as well as in parts of Europe.
Hertz's order for the Model 3 is so large that it constitutes about a tenth of Tesla's entire yearly production capability. This means it may be harder for consumers to get their hands on one outside of the rental industry, and more specifically, outside of Hertz. Other rental car companies may have trouble electrifying their own fleets, given the way Hertz has locked in much of the supply.
You’re probably not planning to buy 100,000 vehicles anytime soon, but you might be looking to switch to an electric car eventually. When you decide to make the switch, Jerry can help make sure you’re getting the best price on car insurance.
Jerry is a free app that compares dozens of car insurance quotes in just seconds, saving you valuable time. And Jerry keeps doing the work for you beyond your initial policy purchase. Every six months, it will gather new quotes for your policy to make sure you're always getting the best deal.