Tesla joins $1T club after Hertz orders record 100,000 EVs worth $4B

Tesla on Monday breached a trillion dollars in market capitalization, the fifth U.S. company to join the club, which includes Apple, Microsoft, Amazon and Alphabet.

The world's most valuable carmaker join the elite club after the company founded by Elon Musk received its biggest-ever order – 100,000 electric rental cars for Hertz, Daily Sabah reports.

Tesla shares were also buoyed by news of the company's Model 3 becoming the first electric vehicle (EV) to top monthly sales of new cars in Europe.

The news from Hertz comes as Tesla is coping with a backlog of unfulfilled orders for its vehicles amid continuing supply chain disruptions, but it does solidify the mainstream appeal of electric cars.

Interim Hertz CEO Mark Fields was cited by Reuters as saying that the order will primarily be Model 3 vehicles. Hertz customers can rent a Tesla starting in November and the company will have 3,000 chargers in 65 markets by the end of 2022, he added. By the end of 2023, Fields said his firm will have 4,000 chargers in 100 markets.

Hertz emerged from bankruptcy protection in June and named Fields, former Ford CEO, as interim CEO in October.

Fields says the Estero, Florida-based company intends to lead as a mobility company with the largest electric vehicle rental fleet in North America.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," he added.

"We absolutely believe that this is going to be competitive advantage for us," Fields said of the Tesla order due to be delivered by the end of 2022. "We want to be a leader in mobility... Getting customers experience with electrified vehicles is an absolute priority for us."

Hertz, which requires customers to refuel gasoline-powered rental cars on return or pay a fee, said for now customers will not have to return Teslas fully recharged.

Hertz has around 430,000 to 450,000 vehicles worldwide, Fields said. He said Hertz would work with other automakers producing electric vehicles.


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