Uber (UBER) Partners With Hertz to Offer 50,000 Tesla (TSLA) Rentals to its Drivers

October 27, 2021 7:40 AM EDT
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Hertz and Uber (NYSE: UBER) have announced a partnership that will see the mobility and delivery company offering 50,000 Tesla (NASDAQ: TSLA) EVs by 2023 for its gig drivers.

Two companies said this partnership marks the largest expansion of EVs on a mobility platform in North America. As of next Monday, Uber drivers can rent Teslas from Hertz in four major cities (Los Angeles, San Francisco, San Diego, and Washington D.C), with the nationwide expansion planned in the weeks to come.

This partnership comes days after Hertz announced it ordered 100,000 Teslas by the end of 2022.

"Today's partnership with Uber is another major step forward in Hertz becoming an essential component of the modern mobility ecosystem and executing on our commitment to being an environmentally forward company," said Mark Fields, Hertz interim CEO.

A recent survey showed that 47% of Uber drivers who drive ICE-powered cars are interested in a battery EV as their next car.

"Climate change is an urgent global challenge we must all tackle together, and now is the time to drive a green recovery from the pandemic. This combines the power of Tesla, Hertz and Uber to help accelerate the transition to zero-emissions mobility. We look forward to seeing more EVs on the road right away,” said Uber CEO Dara Khosrowshahi.

Yesterday, Goldman Sachs analyst Mark Delaney raised the price target on the Buy-rated Tesla to $1,125.00 from the prior $905.00 following a deal with Hertz.

"We believe that this order will help Tesla to continue to generate strong margins,” said Delaney before adding that this deal “could also incentivize other fleets to shift toward EV.”

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