Hertz Bets Big on EVs, Ordering 100,000 Teslas

Rental car company Hertz announced it is coming back in a big way, following its bankruptcy last year. Hertz is now ready to kick off its future: It recently placed an order for 100,000 Tesla electric vehicles to electrify its rental fleet.

This isn’t the first time Hertz has shown interest in the electric vehicle (EV) segment, as it was the first U.S. car rental company to add EVs to its rental fleet in 2011. It was also the first to implement a wireless charging system for electric vehicles.

"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."

Beginning in early November, Hertz customers will be able to rent a Tesla Model 3 at Hertz airport and other locations in major U.S. markets, plus some cities in Europe. To make sure that customers don’t have any issues charging the EVs, Hertz says that it will install “thousands of chargers throughout its location network.” This includes Level 2 and DC fast chargers in about 65 markets by the end of 2022 and more than 100 markets by the end of 2023. Customers will also have access to the 3,000 Tesla supercharger stations in the U.S. and Europe.

Customers get a new booking process for the Tesla EVs since Hertz plans to offer a unique rental experience, which includes an expedited rental process through the Hertz mobile app.

Hertz has not announced the pricing that customers will need to pay to access its fleet of Tesla Model 3 EVs, but the fleet will appeal to EV drivers. According to Hertz, a recent study showed that 40% of U.S. consumers are likely to consider an electric vehicle the next time they buy a new vehicle.

The 100,000 EVs are just the beginning since Hertz says it’s just an "initial order." It’s also not clear if all of the EVs will be the Tesla Model 3, but the announcement did not mention the other Tesla models. The new Tesla EVs will make up more than 20% of the Hertz global fleet by the end of next year. In comparison, EVs represent less than 3% of new car sales. The “new Hertz” is also thinking beyond just rental cars since it wants to become a leader in “electrification, shared mobility and a digital-first customer experience.”

Hertz teamed up with NFL star Tom Brady for this initiative. Brady stated: "I've been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious. I've always loved how easy and convenient Hertz makes it for me when I'm traveling to my favorite places like New York, LA and Tampa and can't wait to see what they continue to have in store."

We will have to wait and see if any other rental car companies also try to compete with their own fleet of Tesla EVs. Hertz’s Tesla fleet will also likely increase Tesla’s consumer sales as drivers will now have more exposure to them, letting them test out the EVs before they decide to buy one.