The largest order for electric cars in history has been formalized by Hertz, the rental company that went through hard times last year and was on the verge of bankruptcy. The new owners want to speed up the electrification of the fleet. For its part, Tesla has achieved all-time highs in the stock market price.
For more than a year, the rental company Hertz has been literally in financial hell, protected from suspension of payments by the figure of the Chapter 11 of US law. That has prevented bankruptcy, and Hertz emerged clean from the process on July 1 of this year.
The new owners, Knighthead Capital Management and Certares Management, determined to give the rental sector a boost (rent a car or RAC), they have thrown all the meat on the grill and placed a gigantic order for electric vehicles. Tesla has received an order for 100,000 Model 3, its D-segment electric sedan. The communication campaign will feature the seven-time champion of the Super bowlTom brady.
We have an industry precedent, when Amazon commissioned Rivian to build 100,000 electric vans just as the e-commerce giant wanted them. The nuance is that this time we talk about cars that will be renewed in a relatively short time, not of industrial vehicles that will work much more.
30-second Hertz promo spot featuring Tom Brady
By the end of 2022 Hertz’s Tesla Model 3s will be offered in 65 markets, and by the end of next year it will be 100 markets. Hertz is preparing the necessary charging infrastructure at its delivery / return points, and obviously cars will have access to Tesla’s Supercharger network, more than 3,000 in Europe and North America.
Hertz will offer these cars as a Premium segment, with a “differentiated” experience. For example, rental customers will have a digital guide in which they will learn the ins and outs of electric cars, if they are not used to it, and streamline the digital rental process at a more advanced stage.
The first cars will be ready at Hertz offices next month., mainly in the United States and in a small list of European cities in the first instance. Tesla cannot deliver the cars all at once, let’s bear in mind that in one quarter the sum of the Model 3 / Model Y production is around 200,000-250,000 units (not counting Giga Austin and Giga Berlin).
For Hertz it is not a novelty to work with Tesla, it has been doing it for years, and both electric and hybrid cars have been offered in its catalog since 2010. This movement is part of a strategic move to build brand image, reduce costs and modernize around 20% of its fleet.
The markets have loved this news. Yesterday we told you that Tesla has exceeded $ 900 of price and its record after consummating the “Split” of 2020. Today it has exceeded $ 1,000, so Elon Musk’s company has entered the very select club of trillion companies with “b” dollars (“One trillion” in English).
These companies alone have been worth more than a trillion dollars: Apple, Microsoft, Alphabet, Amazon and Facebook
Just today, Tesla has increased its price more than 12%, which is a lot of intraday, especially for such an expensive value. Tesla may have to make another “Split”In other words, each shareholder has more securities, but their unit value is lower, or it is difficult for small investors. Tesla’s bubbler component has inflated a bit more today.
Hertz Global Holdings Inc, the company that has come out of the restructuring of the Chapter 11, has also gone up, but less spectacularly, around 10% at the time of closing this information. Now being close to $ 27, it is not at a high, it would have to reach $ 35.
Is the operation risk-free? Rather not. In the press release Hertz warns that there are factors that it cannot control, that is, that Tesla has difficulties to deliver all the cars. So far Tesla is showing that it can dodge the semiconductor or microchip crisis with considerable dignity.
On the other hand, it must be taken into account that this order is valued at about $ 4.2 billion, that is, an average of $ 42,000 per car, close to its market value – the specific version is unknown. Deliveries will be made over the next 14 months.