Hertz has ordered 100,000 Tesla cars in a $4.2 billion deal aimed at expanding its electric vehicle fleet, the company announced on Monday. The deal will run until the end of 2022, and includes new EV charging infrastructure across the company’s global operations.
It is the first major step the rental company is taking since it escaped bankruptcy orchestrated by the pandemic. Tesla shares rose more than 9% at the news, selling above $1,000 for the first time and pushing the company across the $1 trillion capitalization threshold. Also, Elon Musk fortune jumped by $28.5 billion to $281 billion.
Hertz also said it’s teaming up with seven-time Super Bowl champion and entrepreneur Tom Brady to showcase how it is making EV rentals fast, seamless and more accessible, as the company accelerates its commitment to lead the future of mobility and travel.
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“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.”
Bloomberg which broke the news, reported that Hertz is planning to electrify nearly all of its roughly 500,000 cars and vans, with Tesla’s order making up a sum of the plan.
Hertz made a comeback from bankruptcy through a $5.9 billion investment led by Knighthead Capital Management and Central Management. The press statement issued by the company said the move is driven by growing love for electric vehicles.
It noted that 40 percent 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, according to Pew. Global EV sales skyrocketed 200 percent in the last year and will likely continue to grow with commitments from global automakers to increase EV sales.
Environmental concern has been a major drive for the shift to EVs. With the current US administration pro green, electric vehicles have gained more popularity recently, which is also boosted by high efficiency, positive user experience, battery breakthroughs and rapidly expanding charging networks.
Hertz said customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in U.S. major markets and select cities in Europe, beginning in early November and expanding through year end.
To kick the EV shift off, Hertz also is installing thousands of chargers throughout its location network. Customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations throughout the U.S. and Europe. It will also offer a premium and differentiated rental experience for the Tesla EVs. This includes digitized guidance to educate customers about the electric vehicle to get them on their way quickly, and coming soon, an expedited EV rental booking process through the Hertz mobile app, the company said.
The Tesla order means EVs will make up more than 20 percent 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, according to the company’s press statement. However, Hertz said these ambitions could be affected by factors outside of Hertz’s control, such as semiconductor chip shortages or other constraints.
Te question is what is the average age of vehicles driven in Nigeria /west Africa (target market for Dangote’s PMS sales vis-a-vis purchase of brand new cars across Africa.
Secondly how quickly, do we expect PMS and fossil fuel cars to be phasedout in Nigeria and Africa at large, given the level of poverty, the level of disposable income available to potential buyers of cars, the affordability of Teslar cars and electric cars over time and the booming global trade in second hand cars?
Although I suspect climate change activists, bankrolled by electric car makers with market expansion ambitions, to put pressure on various international bodies and governments to accelerate the phase out of fossil fueled cars but what about airplanes and marine vessels/ships and their contribution to climate degradation? How soon the electric powered planes and ship catches on will determine the level of threat to Dangote Refinery vis-a- vis the advent of electric cars.
They told us oil is going out of fashion but post pandemic the price kept going up. All we hear about EV is the good side, nobody is telling us about the disadvantages. Yet everybody seem to be jumping on the bandwagon. Is that not how we were told about processed foods industry only to discover that the best food is what our progenitors consumed. We wait to see how this plays out….. Dangote refinery will certainly Prosper….
Inverters have been around for a while yet people are still buying generators.