Hertz Orders 100,000 Teslas — Tom Brady Face of the News

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You may recall that Hertz went into bankrutpcy proceedings in mid-2020 due to the COVID pandemic and the resulting drop in economic activity. A few months ago, it re-emerged. Now, things are getting very lively. Hertz has ordered 100,000 Teslas, while also paying 7-time Super Bowl champ Tom Brady some enormous amount of money (I presume) to help drum up attention and business.

Many of us who were looking at the Tesla Model 3 when it came to market and production scaled up assumed that the car would be a popular choice for rental car companies. However, it seems that early reliability concerns and probably other matters kept the rental car companies at bay and we seldom saw a company add a Tesla to its fleet. Sometimes all you need is time.

With Tesla having established itself as a company, as a global producer, and as the world’s #1 electric vehicle seller at a time when EV sales are booming, it is simply a logical choice for a company like Hertz that wants to get more EVs in its fleets. As one of our helpful readers just pointed out to me, 100,000 cars is more than all the non-Tesla EVs sold in the US in the first three quarters of this year.

To put Hertz’s order of 100,000 Model 3s in perspective, it is more than ALL EVs sold in the US by ALL manufacturers other than Tesla from Jan-Sept 2021$tsla https://t.co/eLxhBY9b8Y pic.twitter.com/1M0PygtbAv

— Not_an_Analyst🇺🇦 (@facts_tesla) October 25, 2021

The order is supposed to be fulfilled by the end of 2022. The first Tesla rental cars will be available in major US markets and select European cities starting in November.

But how big is the Hertz vehicle fleet? Is this a significant effort? It sure is. These 100,000 Teslas will mean that 20% of the Hertz vehicle fleet will be electric. EVs are expected to be available in 65 Hertz markets by the end of 2022 and 100 markets by the end of 2023.

The company is also investing in EV charging infrastructure (as one would do) to support all of those EVs at their home parking spaces (presumably, often at airports). The company says it is installing thousands of chargers.

The Growing EV Market

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields. “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.”

Without a doubt, requests from people renting cars from Hertz must have gone up noticeably in the past couple of years. Millions more electric vehicles have been sold, and Tesla itself has sold around 2 million. Furthermore, survey after survey shows people are curious about electric vehicles and considering buying one, and renting one for a few days is an ideal way to see how that would work for you.

“Today, 40 percent of U.S. consumers say they are likely to consider an electric vehicle the next time they are in the market for a new vehicle, according to Pew,” Hertz writes. “Global EV sales skyrocketed 200 percent in the last year and will likely continue to grow with commitments from global automakers to increase EV sales. For example, in August, three U.S. automakers pledged to boost EV sales to 40-50 percent by 2030.”

Hertz will offer a premium and differentiated rental experience for the Tesla EVs. This includes digitized guidance to educate customers about the electric vehicle to get them on their way quickly, and coming soon, an expedited EV rental booking process through the Hertz mobile app.

You can go to hertz.com/ev to learn more.

Naturally, with the EV market going up fast, the fossil fuel vehicle market is on its way down. That comes with big costs and risks that a company like Hertz has to think about. For more on that topic, I recommend: “The Osborne Effect On The Auto Industry” and “Capital One: Value Of Luxury Gas Cars Getting Slammed By Tesla Model 3.”

Wait, What About Tom Brady?

Yes, vegan Tom Brady is promoting a green lifestyle in more ways. He’s the face of the Hertz electrification push now. Here’s the info on that:

“To spread the word about its leadership on EV rentals, Hertz is partnering with seven-time Super Bowl champion Tom Brady for a new ‘Hertz, Let’s Go!’ campaign.

“Two new ads – ‘Plugged In’ and ‘Speed’ – beginning today show Brady renting, recharging and using an EV at a Hertz airport location. The spots use humor and Brady’s signature ‘Let’s Go’ game-day rallying cry to underscore Hertz’s reputation for excellence, speed and ease throughout the travel experience.

“‘Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again,’ said Tom Brady. ‘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. I’ve always loved how easy and convenient Hertz makes it for me when I’m traveling to my favorite places like New York, LA and Tampa and can’t wait to see what they continue to have in store.'”