EV maker Tesla’s valuation crosses $1t for first time after Hertz orders 100,000 cars
US electric car maker’s market cap is now higher than Volkswagen, BMW and Honda combined
New York: The US car rental company, Hertz, said it would convert more than 20 per cent of its rental fleet to Tesla’s electric cars by the end of next year - an announcement that pushed Tesla’s stock value beyond $1 trillion for the first time.
The order for 100,000 Teslas was a bold move for Hertz, which is just emerging from bankruptcy, and a sign of growing momentum in the shift to electric vehicles. And it was the latest fuel for Tesla’s skyrocketing share price, which gained nearly 13 per cent to finish the day at $1,024.86, its first close above $1,000.
Bloomberg said the order would generate about $4.2 billion of revenue for Tesla, suggesting that Hertz was paying close to face value for the vehicles. Hertz customers will be able to rent a Tesla Model 3 compact sedan in some major markets in the US and Europe starting in early November.
The company said that it planned to install thousands of chargers at its locations and that it was teaming up with quarterback Tom Brady to promote its EV offerings in a marketing campaign.