Hertz buys one hundred thousand Tesla and sprints to the electrification finish line of the car rental giant’s fleet. The order, according to Bloomberg, could be worth $ 4.2 billion, enough to become the largest ever in the electric car sector. It will be completed by the end of 2022, but from the beginning of November, the company’s customers will be able to rent Model 3 from the Elon Musk house at airports – and beyond – in large US markets and in selected European cities. At the 2022 milestone, Hertz’s electric fleet will represent a fifth of the total, a long march from the first “green” vehicles introduced by the group back in 2011. The reaction on Wall Street to the maxi order is immediate: the leading company in electric cars founded from Musk, already back from a brilliant quarterly report, reached $ 1 trillion in capitalization, closing up 13% at a market value of $ 1.010 billion. And entering to all intents and purposes in a restricted club today commanded by Apple and Microsoft, with over two trillion billion, followed by Alphabet and Amazon.
Thousands of charging stations
Hertz did not stop at the new order: it announced a strengthening of the infrastructure for the cars, with the creation of thousands of battery charging stations in its network of car rentals. There will be at least three thousand between the United States and Europe, covering 65 markets by December 2022 and over one hundred by the end of 2023.
La New Hertz hi-tech
In this way, the company intends to cultivate an image of New Hertz, devoted not only to electrification to digitalization. “Electric vehicles are now part of the norm and we have only begun to see increased demand and global interest,” said Mark Fields, Hertz interim CEO and former Ford top executive. “The new Hertz intends to be a leader as a mobility company, starting with the largest fleet of electric rental vehicles in North America and with a commitment to grow this fleet and provide the best rental and charging experience for both home use. recreational and business purpose to the world ».
The shot on the Tesla Stock Exchange
The precise financial details of the transaction actually remained confidential. It is unclear what discounts Hertz got for an order of this size. But the significance of the decision, a bet on the future of electric and hi-tech vehicles, was clearly and quickly reflected on the stock market. Tesla immediately earned over 9% on Wall Street, surpassing the $ 1 trillion market cap in the middle of the session and defending that value at the end with an advance of 12.66%.
Optimistic analysts
The stock is worth almost $ 1,025 today and some analysts see it in continuous sprint: Wesbush has a price target of $ 1,500, stating that Tesla is only in the early stages of the “green wave” and that it remains not a car company but the leader of a profound technological transformation. Other analysts remain more cautious and fear excessive optimism. Hertz is currently unlisted after exiting a regime in June controlled administration asked in May 2020 with the pandemic crisis. However, he is planning an equity placement in the US by the end of the year, which could now approach.
–
