Hertz, a rental car firm, has placed an order for 100,000 electric vehicles from Tesla as part of a larger strategy to electrify its fleet.
Tesla’s Model 3 sedans will be available to rent at Hertz outlets in major U.S. markets and parts of Europe beginning in early November, according to a statement from the rental business.
Customers will be able to use Tesla’s supercharger network, as well as Hertz’s own charging infrastructure.
Tesla will earn $4.2 billion from the transaction, which is the single largest order for electric vehicles ever.
In pre-market trade, the automaker’s stock was up 4.3 percent on the announcement.
“Electric vehicles are already mainstream, and we’ve only just begun to witness increased global demand and interest,” Hertz interim CEO Mark Fields said in a press statement. The new Hertz will be a mobility leader, beginning with the largest electric vehicle rental fleet in North America and a commitment to expand our EV fleet and provide the finest rental and recharging experience for leisure and corporate customers throughout the world.”
After the pandemic hit the automobile rental business hard, Hertz filed for bankruptcy in May of last year.
This announcement comes only a few months after Hertz survived the bankruptcy.
Investors led by Knighthead Capital Management and Certares Management eventually refinanced the corporation, which is more than a century old, for $5.9 billion.