Tesla Sold 100,000 Cars To Hertz, Which Plans To Rent Up To 50,000 Cars To Uber Drivers

Tesla Sold 100,000 Cars To Hertz, Which Plans To Rent Up To 50,000 Cars To Uber Drivers


Tesla Sold 100,000 Cars To Hertz Rental Car Company, Who Plans To Rent Up To 50,000 Cars To Uber Drivers. Photo: A Tesla owner charges his vehicle at a charging station in Topeka, Kan., April 5, 2021. (AP Photo/Orlin Wagner)

The next rental car you get from Hertz might be a Tesla. Hertz just purchased 100,000 electric vehicles (EVs) from Elon Musk’s firm and 50,000 of those are earmarked to be leased to Uber drivers under a separate deal with the ride-hailing firm. 

Hertz also inked a deal with online car platform Carvana to sell off the rental cars it no longer wants. 

The Hertz-Tesla car order on Oct. 25 was the largest ever for EVs at $4.2 billion and the sale propelled Tesla’s valuation past $1 trillion.

News of the deal brought Tesla’s stock to more than $1,045 a share midday, a new record high just one trading day after Tesla shares broke $900. The stock closed up 12.66 percent at about $1,024 a share, CNBC reported.

Hertz, which recently emerged from bankruptcy and is now under the control of hedge fund and private-equity owners, is moving toward mobile technology and digitization.

Under the agreement, Uber drivers who previously had to provide and maintain their own EVs will be able to rent a Tesla from Hertz instead. The cars will become available for Uber drivers on Nov. 1. 

“Now is the time to drive a green recovery from the pandemic,” said Dara Khosrowshahi, CEO of San Francisco-based Uber, in a joint statement with Hertz. 

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“Uber’s partnership with Hertz is probably aimed at fending off disruption from a direct rollout of robo-taxis, built on a network of electric and autonomous vehicles. Renting rather than buying vehicles suggests Uber will keep operating an asset-light model. However, high variable costs could be a persistent drag on the contribution margin in the near term,” Mandeep Singh, Bloomberg Intelligence senior technology industry analyst, reported Yahoo.

Under the Uber agreement, drivers will pay a preferred weekly rate for unlimited miles in the Hertz EVs, plus recharging and incidental damage expenses. Uber is offering drivers a zero-emissions incentive of $1 a ride for using EVs and 50 cents for every rider who chooses to go green, Fortune reported.