Tesla (TSLA) receives order for 100,000 Model 3s from Hertz as rental company plans shift to electric vehicle fleet

Hertz has announced on Monday morning it is ordering 100,000 Tesla Model 3s as part of its ambitious plan to convert its fleet to electric vehicles (EVs) by the end of 2022.

The announcement comes at a time when customers are facing extended wait times to receive their cars, with some configurations seeing delivery dates nearly one year away.

According to sources familiar with the matter who spoke to Bloomberg, the deal is worth about $4.2 billion, making it the largest ever purchase of EVs. If true, the total amount means Hertz is paying close to retail prices for the cars.

The EVs will be reportedly be delivered over the next 14 months, with some cars being available as early as next month.

The Model 3s will be available to customers in the U.S. and parts of Europe.

The company has already updated its website to show the Model 3 front and center on its homepage, but has not yet announced daily pricing for the EV.

Hertz rental
Image via Hertz

Hertz made the announcement just four months after exiting bankruptcy protection. The company suffered major losses as a result of the COVID-19 pandemic.

Tesla (TSLA) shares are up nearly 7% following the news, inching closer towards the $1,000 mark and trading above $970 for the first time.

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