Hertz places an order for 100,000 Tesla Model 3 electric vehicles in a bid to go electric

Car rental company, Hertz, placed an order for 100,000 Tesla Model 3 after emerging from bankruptcy protection in a bid to become the largest electric vehicle rental company in North America.

Elon Musk’s Tesla Inc. received its biggest-ever order, as car rental company Hertz announced it would buy 100,000 electric rental cars to go more eco-friendly just months after emerging from bankruptcy. Hertz said it’s buying the Tesla Model 3 small cars by the end of 2022, and Hertz also said it would set up its own electric vehicle charging network.

Hertz gave no price for the order, but it is speculated to be worth around $4.2 billion because each Model 3 has a base price of approximately $40,000. The deal will also be the single largest purchase ever for electric vehicles (EV). The cars will be delivered over the next 14 months from an already tight production schedule for Tesla.

Hertz is also investing in its charging network, with 3,000 chargers set up in 65 locations across the U. S. by the end of 2022 and 4,000 by the end of 2023.Hertz emerged from bankruptcy protection in June. Mark Fields, a former Ford Motor Co. CEO, was appointed as interim chief executive in October. Hertz Global Holdings Inc. filed for bankruptcy protection in May 2020 because of the pandemic-induced economic shutdown.