Do You Know: Why Hertz CEO bought a $4.2 billion Tesla, Elon Musk shocked
Sunday, October 31, 2021 | Chimniii Desk
Key Highlights
- The firm revealed on Monday that it has made a $4.2 billion order for 100,000 Teslas, the largest single purchase of electric vehicles in history, according to Bloomberg.
- Hertz will give 50,000 of the cars to Uber drivers as part of the contract, allowing more customers to experience riding in a Tesla.
- "While Fields intimated that Hertz may ultimately run fully on electric vehicles, he told Morning Brew that "it's not something we're willing to discuss publicly."
- According to the interview, he did state that Hertz is "dedicated to doing the right thing for the environment" and that their plans for EVs will "develop over time.
- According to the International Energy Agency's Global EV Data Explorer, there were more than 10 million electric vehicles in service globally in 2020, 1.75 million of which were in the United States.
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Mark Fields, interim CEO of Hertz, discusses why the once-bankrupt auto rental company has chosen to enter the realm of electric vehicles.
The firm revealed on Monday that it has made a $4.2 billion order for 100,000 Teslas, the largest single purchase of electric vehicles in history, according to Bloomberg. Fields attributed the record-breaking move to "a combination of data and also mindset," he told Morning Brew in an interview on Thursday.
"Over the next 12 to 36 months, I believe there will be approximately 100 EV models introduced to the market," Fields told Morning Brew. "So you have this combo of increasing customer intent or propensity and the arrival of things."
Fields stated that he chose Teslas primarily because to their volume of production, but added that Hertz eventually wants to collaborate with all EV automakers "and have strategic dialogues with them rather than simply tactical ones."
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Tesla will be available in the United States and Europe over the next 14 months, according to a press statement. Hertz will give 50,000 of the cars to Uber drivers as part of the contract, allowing more customers to experience riding in a Tesla. Tesla's stock jumped 4.3 percent in pre-market trade in the aftermath of the announcement.
"Electric vehicles have entered the mainstream, and we've only recently begun to see worldwide demand and interest increase," Fields stated in the announcement. "As a mobility company, the new Hertz will set the standard, beginning with the largest EV rental fleet in North America and a commitment to continue growing our EV fleet and providing the finest rental and recharging experience for leisure and corporate customers worldwide."
While Fields intimated that Hertz may ultimately run fully on electric vehicles, he told Morning Brew that "it's not something we're willing to discuss publicly." According to the interview, he did state that Hertz is "dedicated to doing the right thing for the environment" and that their plans for EVs will "develop over time."
Tesla CEO Elon Musk said he was shocked by the “strange” spike in value, given that his company is already selling out of cars as production ramps up.
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Fields expressed hope that more consumer access will encourage more drivers to acquire electric vehicles, stating that studies show that after driving or riding in an EV, a person is three to four times more likely to purchase one.
"That benefits us in two ways: it benefits Tesla (since they're driving Tesla), but it also helps us achieve our larger goal of accelerating the adoption of EVs and sustainable transportation globally," he explained.
According to the International Energy Agency's Global EV Data Explorer, there were more than 10 million electric vehicles in service globally in 2020, 1.75 million of which were in the United States. According to the sustainability news site Treehugger, the Tesla Model 3 was one of the most popular EVs sold in 2020, with over 95,000 units sold.
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