Hertz Will Make 50,000 Teslas Available to Uber Drivers

Fremont, CA, USA - January 20, 2021: Tesla factory plant,  an American electric vehicle and clean energy company based in Palo Alto, California.
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Proving that it is undergoing a complete transformation and intends to stay ahead of competition after being fresh out of bankruptcy, Hertz is accumulating industry coups: Today, the car rental company announced it would make up to 50,000 Teslas available to Uber drivers.

See: Hertz Purchases Fleet of 100,000 Teslas — Tesla Becomes First Auto Company To Reach $1 Trillion Market Cap
Find: Experts Say Tesla’s Trillion-Dollar Stock Could Go Even Higher — $2 Trillion Valuation Not Out of Reach

The announcement comes on the heels of Monday’s news that it had acquired 100,000 Teslas in what represents the largest electric vehicle fleet in North America and one of the largest in the world.

It’s unclear whether Hertz’s 50,000-vehicle deal with Uber involves half of the fleet it has ordered from Uber, according to Barron’s.

The initial 100,000-car order is equivalent to about 10% of what the automaker can currently produce in a year, Bloomberg reported, which might help Hertz prevent rivals from replicating the strategy.

“Next time you order an @Uber, it might be one of our @Tesla EV’s Eyes. Excited to provide up to 50K EV’s to @Uber drivers by 2023  #LetsGo,” Hertz tweeted.

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To help it transform post-bankruptcy and lead these bold moves is Hertz’s new interim CEO, Mark Fields. The former president and CEO of Ford Motor Company was hired earlier this month.

Hertz said it will make the 50,000 Teslas available for drivers to rent by 2023, exclusively for drivers using the Uber network in the US. This is the largest expansion of electric vehicles (EVs) on a mobility platform in North America and one of the largest globally, marking another step towards Uber’s zero-emissions goal, according to an announcement.

Starting November 1, drivers can rent Teslas through Hertz’s rental program in Los Angeles, San Francisco, San Diego and Washington, DC, with a nationwide expansion in the following weeks, the company said.

Tesla rentals will start out at $334 a week and fall to $299 or lower as the program gets underway, including insurance and maintenance.

“This new program with Hertz aims to create positive environmental benefits by reaching rental drivers, who are often looking to offer rides for more hours and more miles than the average driver. Research shows that when rideshare drivers go electric, they realize 3 to 4 times greater emissions savings than average car owners,” according to the announcement.

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Hertz added that while this partnership is a step forward to advance electrification on the Uber platform, it’s important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle.

See: Ford Puts $11.4 Billion Toward ‘Largest Ever US Investment’ in Electric Vehicles – Analysts Reiterate ‘Buy’ Rating
Find: Experts Say SpaceX Might Make Musk a Trillionaire, But Tesla Just Boosted His Worth $25 Billion

Tesla’s stock soared following the news Monday, making the company hit the $1 trillion market cap. Now, some experts see the EV company’s valuation continuing to balloon and the stock continuing to rise.

Wild $T1mes!,” Musk tweeted yesterday, to which MicroStrategy co-founder Michael Saylor replied: “Congratulations. The first trillion is always the hardest.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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