Hertz’s remarkable turnaround can be attributed to its partnership with Tesla, which saw the rental company place an order for 100,000 Model 3 sedans. Despite only receiving delivery of less than half of the vehicles, Hertz’s stock is soaring and the company is experiencing record earnings.
When the news of Hertz’s agreement with Tesla was initially announced, many were skeptical. After all, Hertz had just filed for bankruptcy and seemed to be in dire straits. However, it quickly became apparent that Hertz’s order was simply a standard consumer purchase and the company would have to pay full price and wait in line to receive the cars.
See also: Hertz and Uber Expand Partnership to Offer 25,000 Electric Vehicles for European Rideshare Drivers
Despite the slow delivery of Teslas, Hertz’s fleet has seen significant growth. According to Automotive News, the company had approximately 430,000 cars in service in 2022, with 11% of those vehicles being Tesla EVs. This means that only around 50,000 of Hertz’s Tesla vehicles have been delivered, yet the company is still seeing the positive results from its “deal” with the electric car manufacturer.
Hertz is rapidly expanding its presence in the electric vehicle (EV) rental market, making strategic purchases of EVs from General Motors and Polestar. The company has ordered 175,000 EVs from GM and 65,000 from Polestar, solidifying its position as a leader in the EV rental space. Hertz has also teamed up with ride-share giant Uber to supply EVs for its drivers and BP Pulse to install EV chargers at its locations.
See also: Hertz profits soar following investment in electric vehicle fleet
hallenges posed by the COVID-19 pandemic, Hertz recorded an impressive $8.7 billion in revenue in 2022, which saw its stock rise by 7%. This success has set the stage for the company to take bold steps towards electrification. In a recent statement, Hertz CEO Stephen Scherr emphasized the importance of electrification to the company’s future success:
“Our focus on electrification was a key driver of our success in 2022 and we are committed to continuing this trajectory. This year, we will grow our Hertz, Dollar, and Thrifty brands with a continued focus on electrification and technology. Our investments in these areas will result in increased efficiency, improved returns, and a better experience for our customers globally.”
