Hertz is buying 100,000 Teslas

Trouble getting gasoline-powered cars

Hertz is betting big on electric vehicles. It’s buying 100,000 Teslas, the largest-ever order by a single buyer.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, the interim CEO of Hertz and former CEO of Ford. “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.”
But the reasoning goes beyond customer demand: Hertz and its rivals are having trouble getting gasoline-powered cars from traditional automakers, as a shortage of computer chips and other parts is making car production difficult.
It also shows that Hertz, less than four months out of bankruptcy, is willing to spend big again.

The company emerged from bankruptcy on June 30 with $1.8 billion in unrestricted cash and $1.2 billion available on credit lines. It will likely finance the purchase of the Teslas, as it does with most of its car purchases. Hertz also recently announced plans for an initial public offering that will help raise cash.

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