Hertz Orders 100,000 Tesla Electric Autos

Hertz announced Monday an order to buy 100,000 autos from Tesla by the end of 2022 in the latest embrace of electric car technology by the auto industry.

The car rental giant, which emerged from a bankruptcy reorganization earlier this year, said the electric vehicles (EV) would be available "in US major markets and select cities in Europe" beginning in early November, according to a Hertz press release.

Hertz is also installing EV charging stations at its locations.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said interim Hertz Chief Executive 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."

Hertz exited the US Chapter 11 bankruptcy process in June, a little more than a year after filing to reorganize its finances as the coronavirus pandemic devastated the travel industry.

However, with the global economy reopening in the wake of Covid-19 vaccines, the car rental market has revived and rental companies are renewing their fleets.

Led by Elon Musk, Tesla has been ramping up production rapidly by increasing output at existing factories and building new plants in Germany and the US state of Texas.

In the last year, conventional automakers like General Motors and Volkswagen have also announced significant new EV plans.

With the current order, EVs will comprise 20 percent of Hertz's global fleet. The company will have EV chargers in around 65 markets by the end of 2022 and more than 100 markets by the end of 2023, Hertz said.