According to people familiar with the matter, Hertz, who has just been out of bankruptcy protection for four months, told Tesla, Inc.An order of 100000 vehicles was placed, the first step in the company's ambitious car rental electrification plan.
It is the largest electric vehicle purchase ever and will bring Tesla, Inc. about $4.2 billion in revenue, according to people familiar with the matter. Although car rental companies usually ask carmakers for big discounts, the size of the order means that Hertz is paying a price close to the market price.
The cars will be delivered in the next 14 months, according to people familiar with the matter. Starting in early November, Hertz stores in the United States and parts of Europe will offer rental services for Tesla, Inc. 's Model 3. They say customers will be able to use Tesla, Inc. 's network of supercharging stations, and Hertz is building its own charging infrastructure.
The electrification plan, which will eventually cover 500000 cars and trucks around Hertz, is the company's first major plan since it emerged from bankruptcy in June. It also shows that Hertz's new owners Knighthead Capital Management and Certares Management are determined to shake up an industry dominated by a few large companies.
As of press time, Tesla, Inc. rose more than 4% before trading, and the share price is likely to hit a new high tonight.