Everything you need to know about renting a Tesla at Hertz
Hertz Global Holdings Inc. placed an order for 100,000 Teslas, one the largest-ever purchases of electric vehicles. The deal will bring $4.2 billion of revenue for the carmaker, Bloomberg News reported. The announcement drove shares of Tesla up more than 12% intraday, hitting a trillion-dollar valuation.
Looking to rent a Tesla for your next trip? Here’s what we know.
When will these be available for rent?
Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November. All 100,000 Teslas will be delivered over the next 14 months. Eventually, Hertz expects to add other makes and models to the fleet.
The advertising campaign has already begun — Hertz has hired Tom Brady to promote the partnership.
Where can you fine them?
Tesla rentals will roll out through the end of the year in U.S. cities including two in Hawaii (Maui and Honolulu), six in California (Sacramento to San Diego) and four in Texas (Dallas to San Antonio).
For now, one-way rentals aren’t available, and while autopilot will be enabled, full-self driving will be disabled on the Teslas. Hertz is offering free charging through the end of January.
How much will they cost?
The rental rates will be “similar” to premium and luxury vehicles, Lauren Luster, a spokeswoman for Hertz, wrote in an email. But for Hertz, the price will be steep: the company is paying full price for the Teslas rather than the typical base-model, heavily discounted sedans that populate rental lots.
Why does this matter?
This is Hertz’s first major move since emerging from near-bankruptcy four months ago. The electrification plan, which will eventually encompass almost all of the company’s half-million vehicles worldwide, signals that the second-largest U.S. car-rental company is ready to shake up an industry dominated by large players who are typically slow to change.
The deal also offers Hertz access to Tesla’s software and apps, Trip Chowdhry, an analyst at Global Equities Research wrote in a note to clients today. The Teslas will come pre-installed with a Hertz app that will offer features like on-demand access to auto-pilot and options to add more SuperCharger credits, all of which can lead to additional incremental income, Chowdhry said.