Hertz orders 100,000 Model 3 electric vehicles from Tesla

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Hertz orders 100,000 Model 3 electric vehicles from Tesla
Erik Schatzker
Bloomberg

Hertz Global Holdings Inc., barely four months out of bankruptcy, placed an order for 100,000 Teslas in the first step of an ambitious plan to electrify its rental-car fleet.

The cars will be delivered over the next 14 months, and Tesla Inc.‘s Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November, the rental company said in a statement. Customers will have access to Tesla’s network of superchargers, and Hertz is also building its own charging infrastructure.
Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla 6-4b95-9aca-5cf3d9adc98f-EVRoadTrip_Tesla-PE-fr3-4


It’s the single-largest purchase ever for electric vehicles, or EVs, and represents about $4.2 billion of revenue for Tesla, according to people familiar with the matter who declined to be identified because the information is private. While car-rental companies typically demand big discounts from automakers, the size of the order implies that Hertz is paying close to list prices.

“How do we democratize access to electric vehicles? That’s a very important part of our strategy,” Mark Fields, who joined Hertz as interim chief executive officer earlier this month, said in an interview. “Tesla is the only manufacturer that can produce EVs at scale.”

The electrification plan, which eventually will encompass almost all of Hertz’s half-million cars and trucks worldwide, is the company’s first big initiative since emerging from bankruptcy in June. And it signals that Hertz’s new owners, Knighthead Capital Management and Certares Management, are intent on shaking up an industry dominated by a handful of large players who are typically slow to change.

Hertz, which currently trades over the counter ahead of its relisting on the Nasdaq Stock Market, surged as much as 14% to $28.25 at 9:39 a.m. in New York. Tesla shares rose as much as 6.7%, the most intraday since April 13, to a record $970.84., bringing the automaker closer to a $1 trillion valuation.
By locking up so much of Tesla’s production — the order is equivalent to about one-tenth of what the automaker can currently produce in a year — Hertz may box out rivals from copycatting the strategy. Hertz also is breaking with tradition by paying full price for well-appointed cars rather than the typical base-model, heavily discounted sedans that populate rental lots.

The discussions with Tesla go back months, to when Knighthead and Certares were putting together an offer for then-bankrupt Hertz, Fields said. Also, the relationship between the two companies isn’t exclusive: Hertz can buy EVs from other automakers and rival car-rental companies can order from Tesla, provided it has available capacity.

“We want to work with every manufacturer to help them launch EVs and drive this secular shift to electrification,” Fields said in the interview.

Palo Alto, California-based Tesla, which is moving its headquarters to Texas, didn’t reply to a request for comment.

In 2020, General Motors Co. was Hertz’s biggest car and truck supplier, followed by Nissan Motor Co. and Ford Motor Co.

Teslas, with zero tailpipe emissions, will appeal to rental customers who want a green option or those eager to try out an battery-powered vehicle. Hertz said it hired Tom Brady, the seven-time Super Bowl-winning quarterback, to star in ads showcasing the new Teslas. It also created a dedicated EV website offering free charging through the end of January.

Under Fields, who was CEO of Ford for almost three years until May 2017, the company is looking to EVs as part of a commitment to clean energy. Teslas also are less expensive to maintain and refuel as vehicles with internal combustion engines, and they typically don’t lose as much value in the resale market.

Initially, the charging network Hertz is building at its own locations will be for customers only, Fields said.

Along with the Tesla rollout, Hertz, the biggest U.S. car-rental company after Enterprise Holdings Inc., is embarking on a broader revamp of its business around mobility and digitization. One component of that will be expedited rental bookings on the Hertz app.


Hertz orders 100,000 Model 3 electric vehicles from Tesla
Erik Schatzker
Bloomberg

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Hertz Global Holdings Inc., barely four months out of bankruptcy, placed an order for 100,000 Teslas in the first step of an ambitious plan to electrify its rental-car fleet.
The cars will be delivered over the next 14 months, and Tesla Inc.‘s Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November, the rental company said in a statement. Customers will have access to Tesla’s network of superchargers, and Hertz is also building its own charging infrastructure.
Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla 6-4b95-9aca-5cf3d9adc98f-EVRoadTrip_Tesla-PE-fr3-4


It’s the single-largest purchase ever for electric vehicles, or EVs, and represents about $4.2 billion of revenue for Tesla, according to people familiar with the matter who declined to be identified because the information is private. While car-rental companies typically demand big discounts from automakers, the size of the order implies that Hertz is paying close to list prices.
“How do we democratize access to electric vehicles? That’s a very important part of our strategy,” Mark Fields, who joined Hertz as interim chief executive officer earlier this month, said in an interview. “Tesla is the only manufacturer that can produce EVs at scale.”

The electrification plan, which eventually will encompass almost all of Hertz’s half-million cars and trucks worldwide, is the company’s first big initiative since emerging from bankruptcy in June. And it signals that Hertz’s new owners, Knighthead Capital Management and Certares Management, are intent on shaking up an industry dominated by a handful of large players who are typically slow to change.

Hertz, which currently trades over the counter ahead of its relisting on the Nasdaq Stock Market, surged as much as 14% to $28.25 at 9:39 a.m. in New York. Tesla shares rose as much as 6.7%, the most intraday since April 13, to a record $970.84., bringing the automaker closer to a $1 trillion valuation.
By locking up so much of Tesla’s production — the order is equivalent to about one-tenth of what the automaker can currently produce in a year — Hertz may box out rivals from copycatting the strategy. Hertz also is breaking with tradition by paying full price for well-appointed cars rather than the typical base-model, heavily discounted sedans that populate rental lots.

The discussions with Tesla go back months, to when Knighthead and Certares were putting together an offer for then-bankrupt Hertz, Fields said. Also, the relationship between the two companies isn’t exclusive: Hertz can buy EVs from other automakers and rival car-rental companies can order from Tesla, provided it has available capacity.

“We want to work with every manufacturer to help them launch EVs and drive this secular shift to electrification,” Fields said in the interview.

Palo Alto, California-based Tesla, which is moving its headquarters to Texas, didn’t reply to a request for comment.

In 2020, General Motors Co. was Hertz’s biggest car and truck supplier, followed by Nissan Motor Co. and Ford Motor Co.

Teslas, with zero tailpipe emissions, will appeal to rental customers who want a green option or those eager to try out an battery-powered vehicle. Hertz said it hired Tom Brady, the seven-time Super Bowl-winning quarterback, to star in ads showcasing the new Teslas. It also created a dedicated EV website offering free charging through the end of January.

Under Fields, who was CEO of Ford for almost three years until May 2017, the company is looking to EVs as part of a commitment to clean energy. Teslas also are less expensive to maintain and refuel as vehicles with internal combustion engines, and they typically don’t lose as much value in the resale market.
Initially, the charging network Hertz is building at its own locations will be for customers only, Fields said.
Along with the Tesla rollout, Hertz, the biggest U.S. car-rental company after Enterprise Holdings Inc., is embarking on a broader revamp of its business around mobility and digitization. One component of that will be expedited rental bookings on the Hertz app.

Electrification is the latest turn in Hertz’s wild journey through the COVID-19 pandemic. When demand for rental cars collapsed in early 2020, the company, whose brands also include Dollar, Thrifty and Firefly, was forced to file for bankruptcy and began liquidating its fleet.

Now, 17 months later, Estero, Florida-based Hertz is thriving thanks to a sharp rebound in travel and the global shortage of new cars. Day traders have embraced it as a meme stock.

As of June 30, Hertz had $1.8 billion in cash and its debt-to-equity ratio, a key measure of financial health, had improved to 2.4 from almost 10 at the end of 2019, according to an Oct. 15 regulatory filing.
Knighthead, a distressed-debt hedge fund, and Certares, a private equity firm specializing in travel, won the bankruptcy auction for Hertz in May with a $6 billion bid. It already looks like a bargain: As of Oct. 22, the company had a market value of $11.6 billion in over-the-counter trading.

https://www.detroitnews.com/story/b...nal&itm_content=BelowArticleFeed-FeedRedesign
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Again with the competing double posts. Someone else posted this right before you did. Yet you feel the need to double post it. Why?!
 
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TruckElectric

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Again with the competing double posts. Someone else posted this right before you did. Yet you feel the need to double post it.
The double posting wasn't on purpose. The posts are 4 mins apart.

When I started the post there wasn't a previous post and I was having trouble posting so it took me awhile to complete it and in the meantime the other poster had posted the same article.

So, just chill!
 

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Hertz has a cool 30 second commercial ad spot already posted:




(Patriot)ic Salute to Hertz and Tom Brady!!

... See what I did there :)

Of course he's with Tampa Bay now...
 
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So I searched a bunch of airports in the midwest (Chicago Midway, O’Hare, St. Louis, Minneapolis etc.) and I searched different dates. All but one airport I searched said “Sold Out” for the Model 3. If I rent in June of 2022 at Milwaukee Airport (MKE) I see this:

Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla 5BF63CA9-E6C5-4082-A847-B4A4A49F7CBA



I was also curious how charging would work. Then I found this:

Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla 3783449A-5CEF-4566-8E89-461A190CEB22


Which is odd because my pickup day is after 01FEB2022. (27JUN2022 was the day I picked).

That is the retail price. If I log in with my gold membership (My company has an agreement with Hertz) It was cheaper.
 
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Will Avis and Enterprise be next to order Tesla's for rentals?
 

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So does Tesla stock go up again if another rental company makes a large purchase? I'm liking the stock trajectory over the last little while.
 

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So does Tesla stock go up again if another rental company makes a large purchase? I'm liking the stock trajectory over the last little while.
This has been in the works for months.

If another rental company bought a fleet right now, we’d be looking at damned near 2023 before they would start taking shipments and well into 2023 before they could start advertising that fleet. Tesla is likely to put fleet orders of Model 3 SRs on the backburner in favor of Model Ys and other more profitable vehicles.
 


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The Model 3 and Model Y lines aren't completely interchangeable.

This lets them sell the Model 3 while the delay in Congress and the demand for Y is higher. Next year the idea will be proved and Tesla will have excess Y capacity, too.

-Crissa
 
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Hertz CEO Mark Fields explains why he went with Tesla for big EV purchase
Will Hertz embrace becoming a meme stock again?
OCTOBER 28, 2021
·
Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla F1289444f8dc7d0634d240b7a8cea6e7941f116e0-1000x667

NEAL FREYMAN
MANAGING EDITOR

Tesla Cybertruck Hertz orders 100,000 Model 3 electric vehicles from Tesla 7e5934afb6e4a85d0cf36967b9a5353fe513e1c2-1500x1000
Francis Scialabba, Drew Angerer/Getty Images


Hertz Interim CEO Mark Fields had himself a week. On Monday, the rental car company announced that it was buying 100,000 Teslas in what is considered the biggest EV deal of all time. A few days later, Hertz said it would rent 50,000 of those Teslas out to Uber drivers in a partnership with the ride-hailer, and also inked a deal with the online car marketplace Carvana.

We talked with Fields about the company’s big push into electrification just months after emerging from bankruptcy.

What data were you looking at that spurred your decision to spend billions on electric vehicles?

It’s a combination of data and also mindset. Let me talk about the data: When you look at over the past 4 or 5 years of surveys around consumer intent to buy electric vehicles, the rise has been pretty dramatic. The latest survey I saw said that 70% of consumers would consider an electric vehicle for their next purchase. So that’s the first thing.

The second is, the products are coming. You have a number of products in the marketplace right now, obviously led by Tesla, but you have the Ford Mach-E, you have the Audi that’s in the marketplace, the Porsche, as well as a few others. But more importantly, when you look over the next 12 to 36 months, I think there’s gonna be about 100 EV models coming into the marketplace. So you have this combination of customer intent or predisposition rising, and you have the products coming. So both of those put together are quite compelling.

You mentioned there were a lot of EV products coming into the market. Why did you choose Tesla over, say, a bunch of Chevy Bolts that may have been cheaper?

First and foremost, Tesla can produce EVs at scale—they’re the largest scale producer of electric vehicles, so it made sense to talk with them first. Secondly, this is just the first step for us. Going back to that strategy of leading in the adoption of electric vehicles, we want to work with all of the automakers and have strategic discussions with them instead of just tactical ones.

Do you have a timeline for when your fleet will become fully electric?

It’s not something that we’re prepared to talk about publicly, but clearly we are very much what I would call an environmentally forward-first company now, because we are in the transportation business and we are quite committed to doing the right thing for the environment and we are quite committed to sustainable transportation. So that will evolve over time.


Do you have any expectations around how many Tesla renters will be Tesla owners? And how do you think people approach buying an electric car vs. renting one?

I think part of this strategy of buying the Teslas is what I like to call “democratizing the availability of EVs.” Because it allows any customer or any person to go out and rent a Tesla or an electric vehicle for a day or a weekend and really get a sense for how it feels, whether they enjoy it, all that good stuff. There are studies out there that say that for a person who rides in an electric vehicle, or they get a chance to drive it, they are 3 or 4 times more likely to buy it. So that serves dual purposes for us: It helps Tesla (because they’re driving Teslas), but more importantly it helps us achieve our overall objective of making sure we accelerate the adoption of EVs and sustainable transportation across the globe.

What role do you see insurance playing in a fully electric future? And what would you most like to see from insurers to better suit the needs of electric fleets?

You’ll have to obviously ask the insurance companies, but when you look at vehicles in general, but definitely electric vehicles, the type of technology that they are incorporating from a safety standpoint—collision avoidance and all that good stuff—that makes it safer on the road, and clearly I think the insurance companies are going to have to prepare for that—they already are. But also the second piece of this with the Tesla vehicles, as well as the industry writ large, by 2030 literally every vehicle that’s sold is going to be connected. And from an insurance standpoint there are opportunities for usage-based insurance (UBI) and those types of things. So I think there’s a lot of opportunity and a lot of change in the insurance industry. Our role at Hertz is to make sure that, whether it’s our consumers or our Uber drivers, we’re providing the appropriate amount of insurance.

You are planning to re-list the company on a major exchange soon. If you were to become a meme stock again, would you embrace it?

We embrace all shareholders.

This interview has been lightly condensed and edited for clarity.


https://www.morningbrew.com/daily/s...ns-why-he-went-with-tesla-for-big-ev-purchase
 
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Will Avis and Enterprise be next to order Tesla's for rentals?
Avis’s stock more than tripled after it teased a plan to invest in electric vehicles

By Courtney Vinopal
Breaking news reporter

Published November 3, 2021

It only took a hint toward an electric vehicle transition to send share prices of Avis Budget Group soaring to their highest level ever yesterday (Nov. 2) after executives at the rental car company said they have plans to add more EVs to their fleet.

“You’ll see us going forward be much more active in the electric scenarios as the situation develops over time,” Avis CEO Joe Ferraro said on an earnings call in response to a question on the company’s electric vehicle strategy. While chief financial officer Brian Choi said Avis has kept the plans mum for competitive reasons, he added the company was working with its partners on a plan to adopt EVs at scale.

The company’s stock was up 108% on the news, which comes after one of Avis’s main competitors, Hertz, unveiled a plan Oct. 25 to offer Tesla vehicles to its customers.

Avis announcement comes a week after Hertz, Tesla agreement
Hertz’s stock rose shortly after it announced it would buy 100,000 electric vehicles from Tesla, news which boosted the car maker’s valuation to $1 trillion that same day. Tesla CEO Elon Musk rattled the market again when he tweeted on Nov. 2 that he hadn’t actually signed a deal with Hertz yet, but the rental car company insisted it’s already started receiving orders of Tesla’s Model 3 car.

Regardless of the stability of the deal between Tesla and Hertz, Avis acknowledged that the plan put the industry on alert to where it’s headed in terms of EV transition. “It pushes pace and draws attention to what needs to be done to absorb electric vehicles at scale,” Choi said on the earnings call.

Absorbing EVs at scale may be a tricky task for rental car companies given the manufacturing challenges many other car manufacturers are currently facing. Tesla has been more resilient to supply chain issues than some of its competitors during the pandemic, and it may be a while before other companies producing EVs (such as General Motors or Ford) are in a place where they can fill an order like the one Hertz recently placed.

“It’s probably a wait-and-see approach,” Edmunds analyst Ivan Drury told Quartz on Oct. 25 when asked about whether the Hertz deal would push other rental car companies to pursue similar purchases. “There’s not enough volume being manufactured in the new car industry to allow this to be something that’s easily conjured up.”

For its part, Avis said it spent the last year working with its partners to “optimize a product line” for EVs while considering how to tackle the logistical hurdles associated with bringing on more electric cars. While the rental car industry already seems to be embracing moves to transition to electric vehicles, Avis’s stock market rally shows they may be seen as a sound investment by the wider public as well.


https://qz.com/2084399/avis-stock-soared-to-its-highest-ever-level-on-plan-to-expand-evs/
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