Biggest Single EV Purchase Ever: Tesla (TSLA) Stock Soars as Hertz Orders 100,000 EVs in $4.2 Billion Deal, Analyst Bulled-up

October 25, 2021 9:25 AM EDT
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Hertz, a car rental company, announced today it has ordered 100,000 electric vehicles (EVs) produced by Tesla (NASDAQ: TSLA). The order should be delivered by the end of 2022 and represents the single-biggest EV order ever, reportedly worth $4.2 billion.

Tesla stock price is up 4.5% in pre-open Monday.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest. The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world,” said Hertz interim CEO Mark Fields.

As of the next month, Hertz customers will be able to rent a Tesla Model 3 in major US markets, as well as select cities in Europe. The company is also investing to add thousands of chargers throughout its network, with customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations across the U.S. and Europe.

Furthermore, Hertz has also announced a partnership with Tom Brady to “showcase how it is making EV rentals fast, seamless and more accessible.”

"Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again. Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of. I've been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious,” Brady said in a statement.

Wedbush analyst Daniel Ives has weighed in positively as he believes “the broader EV adoption [is] underway in our opinion as part of this oncoming green tidal wave now hitting the US.”

“We believe EV demand is outstripping supply for Tesla by roughly 30k units and the chip shortage has clearly amplified this dynamic with wait times for Model Y and some Model 3's extending into the spring for current orders. However big supply help is on its way for Musk & Co. as the long awaited Giga factory hubs in Austin and Berlin are set to have the red ribbon cut over the coming months and should expand Tesla's capacity to roughly 2 million units annually over the next 18 months. We also believe the scale and scope of Giga Austin will enable Tesla to further expand margins markedly over time and will alleviate the supply bottleneck along with Giga Berlin in Europe currently crunching the Tesla supply chain along with global chip shortages,” Ives said in a client note.

Tesla stock closed at $909.68 yesterday.

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