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Tesla’s Hearts Order is ranked as one of the biggest EV purchases to date | Work

Detroit (AP) — Hearts announced on Monday that it will buy 100,000 electric vehicles from Tesla. This is one of the largest battery-powered vehicle purchases in history and the latest evidence of growing commitment to EV technology.

Purchases by some of the world’s leading car rental companies reflect the confidence that electric vehicles are being accepted by eco-friendly consumers as an alternative to vehicles with oil-burning internal combustion engines.

In an interview with The Associated Press, Hearts interim CEO Mark Fields said Tesla has already arrived at the company’s site and should be available for rent in November.

In its announcement, Hertz announced that it would complete the purchase of the Tesla Model 3 compact car by the end of 2022. He said he would work to produce the largest electric vehicle rental vehicle in the north and establish its own electric vehicle charging network. America.

Fields did not reveal how much Hertz was spending on the order.But he said the company had enough capital and a sound balance sheet after the company had Emerged from bankruptcy protection in June..

The base price for each Model 3 is about $ 40,000, so this transaction could be worth about $ 4 billion. It is also ranked at the top of the list of orders for electric vehicles by a single company. In 2019, Amazon ordered 100,000 electric delivery vans from Rivian, a startup manufacturer of electric vans, pickup trucks and SUVs. Amazon is an investor in Rivian.

Hertz’s order helped Tesla stock prices jump nearly 13% to record territory at the end of Monday. The stock traded at $ 1,024.84, boosting the total market value of the world’s most valuable automakers to just over $ 1 trillion for the first time.

This increase adds $ 23.7 billion to the net worth of Tesla CEO Elon Musk, the wealthiest person in the world. According to Forbes, he is currently worth over $ 253 billion.

In an interview with AP, Fields revealed his belief that electric vehicles are becoming more and more mainstream and Hearts intends to become a leading provider of EVs to rental customers. He pointed out a study showing that consumer interest in electric vehicles has increased dramatically over the last five years.

“More people are willing to try and buy,” he said. “It’s pretty cool.”

Hertz, based in Estero, Florida, is also discussing additional purchases of electric vehicles with other automakers to expand EV vehicles as more models enter the market, Fields said.

Hertz is also investing in its own charging network. By the end of 2022, it plans to have 3,000 chargers in 65 locations across the United States, and by the end of 2023, it plans to have 4,000 chargers, Fields said. area.

Customers can also use Tesla’s own large charging network for a fee, Fields said. The company has a network of approximately 25,000 chargers worldwide.

Fields didn’t say how much Hertz would charge to rent a Tesla, or whether it would be more expensive to customers than a gas vehicle.

Wedbush Securities technology analyst Daniel Ives wrote to investors on Monday that Hertz’s orders were Tesla’s “major wings of the cap” and widespread adoption of electric vehicles “as part of this looming green.” Indicates that it is in progress. Tsunami hitting the United States “

China and Europe are ahead of the United States in vehicle electrification. However, demand in the United States is accelerating, followed by startups Lucid Motors, General Motors and Ford, led by Tesla and chasing potential $ 5 trillion market opportunities over the next decade.

Ives said in an interview that he hopes other car rental companies will follow Hearts’ leadership.

“This is a wake-up call for other industries,” he said.

Ives suggested the deal would help Tesla and other manufacturers by providing thousands of consumers with an electric vehicle driving experience that they might not otherwise have done.

“It’s the ultimate test drive,” he said. “For companies that don’t normally market, this is the best brand and marketing deal we’ve ever done,” he said of Tesla.

Hearts’ orders may also help alleviate the national shortage of rental cars, he said. Due to the global shortage of computer chips, automakers have cut production and sales to car rental companies.

Still, Ives said Hertz didn’t expect to receive a significant number of Tesla until the new automaker’s plant near Austin, Texas, went into production later next year.

Hearts is more likely to charge customers more to rent the Model 3 than traditional vehicles with combustion engines, Ives said.

Hertz Global Holdings Inc. filed for bankruptcy protection in May 2020, two months after the coronavirus outbreak nationwide. It was one of the first large corporations to suffer a pandemic due to the proliferation of infectious diseases and the suspension of global travel for both businesses and vacationers.

In October, Hertz was a former Ford Motor Co. Has appointed Fields, CEO of the company, as interim CEO.

Shortly after Hearts announced on Monday, the National Transportation Safety Board issued a letter from the chairman condemning Tesla. This was due to the failure to meet the recommendations made from some fatal collision investigations of the company’s autopilot partially autonomous driving assistance system. Four years ago, the agency recommended that Tesla limit where the autopilot system could operate and better monitor the driver to make sure it was paying attention.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Tesla’s Hearts Order is ranked as one of the biggest EV purchases to date | Work

Source link Tesla’s Hearts Order is ranked as one of the biggest EV purchases to date | Work

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