The rental car company Hertz just announced that they will buy 100,000 Tesla’s for customers to rent by next month. This caused Tesla’s market value to soar above $1 trillion.
— Hertz (@Hertz) October 25, 2021
Earlier in the day, according to The Verge, Tesla’s stock price was at $998.74 before reaching $1 trillion. At the end of the day, Tesla sat at 1,024.84 per share.
The company is now in line with other trillion-dollar companies like Apple, Amazon, Facebook, Google, and Microsoft.
Bloomberg first reported the big news saying that this purchase was the largest order of electric vehicles making it worth $4.2 billion in revenue. Although the company reported chip shortages, they have had record sales during the third quarter and the Model 3 is now the first electric car to top sales in Europe. This also caused Hertz’s stock value to increase by 10.4%.
On top of the already 3000 superchargers within the USA and Europe, Hertz plans to provide thousands more superchargers “throughout its location Network.” According to CBS Los Angeles, this new purchase will make up 20% of their fleet. Hertz’s interim CEO, Mark Fields, commented on the deal saying:
“Electric vehicles are now mainstream, and we’ve only just begun to see you guys in global demand and interest. 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. “
According to CBS Los Angeles, this new purchase will make up 20% of their fleet.
In response to the news, Elon Musk tweeted:
— Elon Musk (@elonmusk) October 25, 2021
This is a win-win for Hertz and Tesla. One year ago, Hertz filed for bankruptcy on December 31, 2020. As of July, they are no longer in Chapter 11 bankruptcy.