Hertz promises world’s largest electric vehicle fleet, Tesla tops $1 trillion

Almost 100,000 Tesla Model 3 sedans are scheduled to join the rental ranks in Europe and the USA next year – however, the hire car company is yet to commit to an electric presence in Australia.

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Car rental giant Hertz is preparing to roll out what is believed be the world’s largest electric vehicle fleet – and the deal with Tesla to make it happen has pushed the car maker’s valuation beyond

$US1 trillion ($AU1.4 trillion), putting it in the same company as Facebook, Amazon, Apple, and Alphabet (Google).

The Hertz order will initially comprise 100,000 Tesla Model 3 sedans, which equates to approximately 20 per cent of the rental company’s global fleet.

The first cars are slated to arrive later this year in Europe and the USA, ahead of bulk deliveries in 2022.

It’s unclear if the rental company received a fleet discount. Assuming it paid the full US retail price of $49,990, the Hertz rental fleet deal could be worth nearly $US5 billion ($AU6.7 billion).

Hertz is also promising to install “thousands and thousands” of electric vehicle charging stations at its retail outlets, and says customers who rent a Tesla Model 3 through its program will receive access to supercharging services.

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

“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 electric vehicle fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

Drive understands Hertz Australia is currently trialling a fleet of Tesla cars in Canberra and Adelaide, however is yet to commit to a wider electric vehicle presence locally.

The value of Tesla stocks increased by more than 5 per cent following the announcement, pushing its valuation beyond $US1 trillion ($AU1.4 trillion).

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