Hertz Places $4.2 Billion Order with Tesla

Rental car company Hertz has ordered 100,000 units of Tesla’s Model 3. The full price for the order was about $4.2 billion.

Chief Executive Elon Musk was sure to note that Hertz paid full price for the vehicles.

“To be clear, cars sold to Hertz have no discount,” he said on Twitter. “Same price as to consumers.”

https://twitter.com/x/status/1452794619410927625

“As the leading car rental company, we now offer the largest electric vehicle (EV) rental fleet in North America,” Hertz said in a release. “Our flagship EV is the Tesla Model 3, a luxurious 4-door sedan that features up to 260-mile driving range on a full charge and is the best-selling electric car in the world.”

Demand for Tesla cars is strong. The company had record deliveries in Q3 despite supply chain challenges caused by the pandemic. The company also stands to significantly increase production with the addition of two new factors – Giga Texas and Giga Berlin.

There have been several examples of fleet owners making a big transition to EVs. Amazon, for example, consigned startup Rivian to produce 100,000 electric delivery vans. Tesla also reportedly has thousands of orders for its upcoming Tesla Semi.

 

[T3SLAROD]

Outstanding! Makes sense why they raised the price of their models! I always thought budget cars when I thought of Hertz, not anymore.

 

[glide]

I always thought budget cars when I thought of Hertz, not anymore.

Is a Model 3 not a budget electric car? Maybe I’m missing something.

 

[T3SLAROD]

Is a Model 3 not a budget electric car? Maybe I’m missing something.

$42k is budget? No, Chevy Bolt or Nissan Leaf is Budget

 

[glide]

$42k is budget? No, Chevy Bolt or Nissan Leaf is Budget

$42K is budget for a vehicle that has enough range for a rental company.

Sorry to all the Model 3 owners who are unaware they purchased a Camry with a very expensive battery.

 

[T3SLAROD]

$42K is budget for a vehicle that has enough range for a rental company.

Sorry to all the Model 3 owners who are unaware they purchased a Camry with a very expensive battery.

Whats wrong with a Camry?

 

[thinktwice]

$42K is budget for a vehicle that has enough range for a rental company.

Sorry to all the Model 3 owners who are unaware they purchased a Camry with a very expensive battery.

If the LR model maybe, but at that price its a SR+ which has comparable range to other actual "budget" EVs (Bolt, Leaf).

 

[TechnoMinds]

I am curious. Will charging be an issue for those renting a car? Maybe not an issue at all. Where do most people renting a car stay and for how many days? I am sure there will be a fair amount in hotels.

 

[Sophias_dad]

Gonna be interesting how they handle the UMC, like when it goes missing, or what adapters are supplied, or will they supply none at all and rely on Tesla(and maybe J1772) charging.

 

[ReddykwRun]

Wow, imagine that, none of the Jo Biden EV Summit boys were invited to the Hertz Party. At least Hertz gets it, that's right they are in it for the money for their business. You know, work hard, make a living, enjoy the rewards of your labor, as opposed to playing Pinocchio with strings from every special interest group telling you what to say and how to dance. Let's Go Hertz.

 

[Gardenscent]

Good for Hertz!

 

[Sophias_dad]

Think of all the free(paid by customer) advertising Tesla will be getting. 100k cars will be rented by SOMEONE virtually all the time, and many of those people will never have driven an EV, and the first one they get will be a Tesla! ~Three day test drives for everyone.

 

[jboy210]

Nice. I bet these will be part of Hertz's upper-midscale car fleet. We usually rent these and they often have a good selection of different cars from which to choose at one price. It will be nice to have an EV alternative and not have to go back to ICE cars.

 

[tivoboy]

I can’t really believe the “there were no discounts given”. The total deal vs. 100K cars, making it 42K per car is POSSIBLE but there really isn’t anything currently that Tesla has that would fit that bill except the cheapest M3 SR, etc.. I cannot IMAGINE that Mark Fields didn’t want to have some Mdoel S or X in the Hertz Fleet, and said just give me 100K of the cheapest cars you can make and we’ll pay over time and give you feedback. Everybody wins, sort of, but Tesla seems to be able to sell everything at a premium to 12 months ago pricing, and will continue to pump things up a bit more as Federal tax credits get approved (staring 1/1/22) so this could actually be a money loser for TESLA in 2022/2023 vs. what they could make per vehicle in the consumer/commercial market. Just my .02$

 

[raptor5244]

Damn, I thought Hertz filed for bankruptcy. Now, they have enough money to 4.2B in Teslas. What a country...

 

[Sophias_dad]

Damn, I thought Hertz filed for bankruptcy. Now, they have enough money to 4.2B in Teslas. What a country...

Its probably a massive Covid loan that never needs to be paid back. /s

 

[Dafarch]

Nice. I bet these will be part of Hertz's upper-midscale car fleet. We usually rent these and they often have a good selection of different cars from which to choose at one price. It will be nice to have an EV alternative and not have to go back to ICE cars.

I had to watch multiple videos plus an interactive Zoom presentation before I drove off with my Model 3 and I’m still learning about the car’s idiosyncracies. How is Joe Public going to make his reservation and simply drive out of the lot? Will he still want to rent the car when he finds out that there is no SXM radio?

 

[jboy210]

I had to watch multiple videos plus an interactive Zoom presentation before I drove off with my Model 3 and I’m still learning about the car’s idiosyncracies. How is Joe Public going to make his reservation and simply drive out of the lot? Will he still want to rent the car when he finds out that there is no SXM radio?

A lot of people that drive EV, like me, want to drive an EV rental. And a lot of EV drivers own Tesla. Hertz is buying these cars over a number of years, and over time more and more people will daily drive EVs of which a lot will be Teslas. They will be used to the car. Additionally, many people may want to use a Hertz rental to see if they can live with an EV. It's called "butts-in-the-seat" advertising. As they have fun with the car, customers will sell themselves into buying a Tesla. It's a brilliant scheme and Tesla gets paid by Hertz to sell cars to Hertz customers.

Regarding SXM, I cancel my subscriptions years ago. I listen to Spotify.

 

[Mikedrives]

$42K is budget for a vehicle that has enough range for a rental company.

Sorry to all the Model 3 owners who are unaware they purchased a Camry with a very expensive battery.

You can't tell the difference between a Camry and a Model 3? Okay.

 

[raptor5244]

Dang, people are going to supercharge and beat the crap out of those Hertz rentals. Keep an eye out for those once they hit the used market.