Hertz May Expand Deal to Supply Tesla Model 3 to Uber to 150,000 Vehicles

Photo: Hertz

Hertz said it plans to expand the deal to supply Tesla Model 3 EVs to Uber. If the rollout of the current 50,000 vehicles to be provided to Uber goes well, soon the deal will be expanded to 150,000 units.

Hertz Global Holdings Inc. has placed an order for 100,000 Tesla Model 3s as a step towards its ambitious plan to electrify its rental car fleet. The car rental company announced yesterday that it will provide 50,000 of them to Uber. Tesla car rentals for Uber drivers will start at $334 per week, then drop to $299 as the program launches more widely. Now there is even more exciting news that points to a major new order from Hertz.

Hertz CEO Mark Fields told CNN that the deal to supply Tesla vehicles to Uber includes an option for the deployment of an additional 100,000 Tesla Model 3 cars. Thus, a total of 150,000 units will have to be handed over to Uber, while 50,000 still will be used by Hertz itself. This will double Hertz's total order to 200,000 vehicles.

In addition to Fields, Uber CEO Dara Khosrowshahi joined the interview and shed light on some interesting details. She asked if the CEO of Hertz was confident that enough drivers would be willing to rent Model 3 for $300 a week, given the cost. However, this shouldn't be a problem, according to Fields.
"I would add that part of our agreement is that if this program is successful, and we believe it will, that over the next three years, it could grow to 150,000 Teslas that can be provided by Hertz to Uber as well."

"Over the next 3 years, this could grow to 150,000 #Teslas that can be provided by Hertz to #Uber."

Mark Fields, Interim CEO @Hertz and @Uber CEO @dkhos talk EV adoption & building charging capacity.

Plus, no self-driving options included for now! 🚘

Part 2 | @firstmove pic.twitter.com/G40TCDCMAd

— Julia Chatterley (@jchatterleyCNN) October 27, 2021

Uber drivers will begin offering services with Tesla rental vehicles starting November 1, initially in Los Angeles, San Francisco, San Diego, and Washington, D.C. The broader nationwide deployment will begin later. If the deployment proceeds as Hertz plans, then in a few months, Tesla may receive another large-sized order.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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