Hertz’ electric vehicle order takes Tesla above $1 trillion market cap
Tesla received a 100K vehicle order from car rental company Hertz (OTC:HTZZ), who emerged out of bankruptcy nearly 4 months ago — sending TSLA up 12.6% and HTZZ up 10%.
What’s the big deal? This deal validates electric vehicles’ growing adoption, marks a big milestone for Tesla and hints at big changes coming for once-struggling Hertz.
For Tesla: This would be the single biggest order in history for Tesla — representing ~$4.2B in sales.
- Tesla’s early advantage is paying off — with Hertz choosing Tesla for being “the only manufacturer that can produce EVs at scale.”
- Tesla is up 40% in 2021 and is now officially a trillion-dollar company.
In the third quarter, Tesla delivered a record number of cars — despite a global supply chain impacting car makers’ ability to source parts.
Yesterday, Tesla also announced its new data and research center in Shanghai — as part of China’s mandate requiring companies to store data locally.
For Hertz: New owners are helping Hertz stay relevant — defining it as “the new Hertz” — focusing on electrification, shared mobility and a digital-first experience.
- After the order, electric vehicles will make up more than 20% of the company’s global fleet.
- Hertz plans to electrify half its global vehicles — also expecting to work with other electric vehicle makers.
Hertz also partnered with Tom Brady for its electric-vehicle marketing campaign and will add a network of charging stations across the nation.
Looking forward: Hertz filed its paperwork to list on the NASDAQ under the symbol “HTZ” — up listing from the OTC market it got bumped down to after its bankruptcy.