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Hertz orders 100,000 electric vehicles from Tesla

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U.S. car rental company Hertz Global Holdings announced on the 25th (local time) that it has placed an order for 100,000 Tesla electric vehicles. Deliveries will begin late next year.

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Several foreign media reported that Hertz will secure a significant number of Tesla electric vehicles by the end of next year, starting early next month.

The company plans to deploy Tesla Model 3 sedan electric vehicles at U.S. airports, major bases and select European cities.

Hertz began introducing electric cars in 2011. Upon delivery of Tesla models, the company anticipated that more than 20% of its fleet will be electric.

The order price has not yet been disclosed. However, since rental car companies receive discounts for placing large orders, per-unit pricing should be lower than the listing price.

Model 3 prices range between $39,990 and $56,900 for the base model without options.

According to rumors, the deal would have been signed for about $4.2 billion.

Furthermore, Hertz announced plans to build its own charging stations. The company will install about 65 charging stations by the end of next year and 100 by the end of 2023. Hertz explained that customers who lease electric vehicles will be able to use all charging stations in the U.S. and Europe.

A slow recovery from the worst.

Hertz filed for bankruptcy protection in May of last year as travel demand collapsed due to the Covid-19 pandemic.

Since then, the company has slowly recovered from the crisis with a change in ownership and better global travel conditions.

The purchase of electric vehicles is part of a new management initiative called “The New Hertz”. The company is now switching its fleet to electric vehicles and focusing on ride sharing.

Hertz’s aggressive expansion also signals that the rental car industry, one of the hardest hit by the pandemic, is entering a real recovery period.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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