October was a big month for the electric vehicle (EV) sector with news that Hertz, the global car rental company, placed an order for 100,000 Tesla electric cars for its fleet in North America.

The investment in the electrification of part of its fleet– value undisclosed but no doubt absolutely huge – will also include a new EV charging infrastructure across the company’s global operations. The vehicle order is scheduled to be met by the end of 2022.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, Hertz interim CEO. “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.”

Beginning in early November and expanding through the end of the year, Hertz says its customers will be able to rent a Tesla Model 3 at Hertz airport and neighbourhood locations in U.S. major markets and select cities in Europe.

With the order, EVs will comprise more than 20 per cent of Hertz’ global fleet and 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. Hertz said these ambitions could be affected by factors outside of Hertz’s control, such as semiconductor chip shortages or other constraints.

This is a whopper of a deal and one that, for Hertz, marks an incredible turnaround. It was only in June this year that the company in the U.S. emerged from a 2020 bankruptcy brought on by the COVID-19 pandemic and the resulting fall in the public’s travel and leisure plans.

It is also a deal that, for those interested in such things, gave Tesla’s shares a big boost and, as consequence, increased the quite phenomenal wealth of the company’s boss, Elon Musk.

It has been reported that following the announcement of the deal, Tesla’s value rose above the $1 trillion ($AU1.3 trillion) mark, with Musk finding himself perched atop a personal fortune somewhere in the region of $280 billion ($AU373 billion). Astonishing.

Hertz said in a statement that the growth of the EV market, the commitment by the industry to boost EV sales, and research that revealed 40 per cent 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, were considerations in making the deal.

The company says it will offer a premium and differentiated rental experience for the Tesla EVs. This includes digitised guidance to educate customers about the electric vehicle to get them on their way quickly, and an expedited EV rental booking process through the Hertz mobile app.

Source: Motor Trader e-Magazine (November 2021) 

26 November 2021