Avis Apologizes for Mistakenly Repossessing Car While Renter Still Had It
Avis Apologizes for Mistakenly Repossessing Car While Renter Still Had ItAll was going smoothly until the weekend when he walked out of his family home and noticed his rental was nowhere to be found. After some careful sleuthing, Campbell believes that Avis repossessed the rental without any warning.
Tesla will supply Hertz with 100,000 cars before the end of 2022, in the single largest EV order for a rental giant, in what the company called an "initial order."
Tesla's stock market value rose above $1 trillion for the first time on news of the massive order, one expected to be fulfilled with the help of Berlin and Austin factories.
Hertz will expand its own charging infrastructure ahead of the deliveries, with Model 3 vehicles expected to be offered in November of this year in the US and Europe ahead of more deliveries through 2022.
In the single-largest EV order for any company, the rental giant Hertz has placed an order for 100,000 Tesla vehicles, in addition to plans to build up its EV charging infrastructure. Hertz is calling the deal an initial order, one that is slated to be completed by the end of 2022. The move means the company will see its rental car holdings swell by a significant number following a pandemic-prompted sell-off last year that saw rental companies shed hundreds of thousands of vehicles.
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The purchase, one that will net Tesla several billion dollars, will see the automaker supply the rental chain with Model 3 vehicles—the sole Tesla model mentioned at the moment by both companies—and one that perhaps makes the most sense from a consumer and manufacturing standpoint.
Customers will be able to rent Model 3s in early November 2021, both in the US and in Europe. However, Hertz did not elaborate just how many Model 3s would be available through its locations at this early stage in 2021.
"Today, 40 percent of US consumers say they are likely to consider an electric vehicle the next time they are in the market for a new vehicle, according to Pew. Global EV sales skyrocketed 200 percent in the last year and will likely continue to grow with commitments from global automakers to increase EV sales," Hertz said in a statement. "For example, in August, three US automakers pledged to boost EV sales to 40-50 percent by 2030."
High Rental Car Prices Expected to Last until 2022, at Least
There could be a seasonal price spike coming for the holiday season, and customers can expect to see rental cars staying in service longer than they used to. We know that prices for renting a car have gone up—way up—during the pandemic, but even with the numbers declining a bit in September, most analysts think they will go back up for the holidays.Some experts think things will calm down in 2022, but others don't see prices getting back to normal until 2023. "By February and March next year, all bets are off," one expert told the South Florida Sun Sentinel.
Hertz will roll out a new ad campaign featuring Tom Brady to promote the vehicles for consumers, with the company giving a preview of the TV spots this week.
Hertz indicated that the order itself will mean that 20% of its rental vehicles worldwide will be EVs by the end of 2023, with the company also intending to boost its offerings of Level 2 and DC fast charging.
“Hertz's massive order to tap Tesla for more than 100,000 vehicles is a huge step in guiding prospective consumers into EVs who may be hesitant on fully pulling the trigger on purchasing one," Robby DeGraff, Industry Analyst at AutoPacific told Autoweek. "It's a pretty brilliant approach I think. Renting a car for days on end can be a valuable way to really gauge the ins-and-outs of a vehicle, especially if it's one you've maybe had the itch to consider buying. With a huge amount of Teslas soon to be available for rent, that's going to open up the doors to let prospective shoppers get a taste at what EV ownership may be like. Not only will renters of Teslas through Hertz get a chance to experience the brand's alluring tech and performance benefits, they'll also be able to take advantage of the impressive Supercharger network."
Hertz Buying 100,000 Teslas in $4.2 Billion Deal, Making EVs 20 Percent of Its Fleet
Rental-car giant to start rolling out Tesla Model 3s early next month and will provide customers free charging at Tesla stations through February 2022. Rental giant Hertz announced this morning that it is ordering 100,000 Tesla Model 3 EVs, giving it "the largest EV rental fleet in North America" and making EVs 20 percent of the Hertz fleet.Hertz promised that customers will start to find Tesla Model 3 cars at some locations in the U.S. and Europe starting in early November. The full 100,000-car order is expected to be fulfilled by the end of 2022.
Where will Tesla get this many extra vehicles in a span of 14 months, amid already-long delivery times?
Two Tesla plants are expected to come online in the next few weeks, including Berlin-Brandenburg that is scheduled to start producing vehicles in December, and the Austin, Texas, Gigafactory that is expected to begin production in the next couple of months. Additionally, Tesla has the Shanghai plant to rely on if needed, which has been supplying vehicles to western Europe for the past several weeks. It's expected that the bulk of the order will come from existing US plants.
"In the end it's going to be a great educational experience benefiting not only Tesla, but other automakers that offer EVs," DeGraff added. "You may have a curious customer who rents a Tesla for a week, isn't a fan of the product itself yet likes the idea of driving electric and feels more inclined to then go test another EV like Ford's Mustang Mach-E or a Nissan Leaf, for example. The more direct first-hand exposure to EVs people have, the quicker and easier the transition away from (internal combustion engines) is going to be."
Uber/Hertz Deal Will Put 50,000 Tesla Model 3 Rental Cars into Ride-Sharing Fleet
Uber drivers can pay $334 a week to rent a Tesla from Hertz in a pilot program expected to expand across the U.S. by 2023. Uber has announced it is partnering with Hertz to offer 50,000 Tesla EVs as rentals for ride-sharing drivers over the next two years.The pilot program will start November 1 in Los Angeles, San Diego, San Francisco, and Washington, D.C., but will expand to other U.S. citiesHertz just agreed to purchase more than $4 billion for 100,000 Tesla Model 3 cars in a deal announced Monday.
The move itself has propelled Tesla stock value past the $1 trillion mark in Monday trading, making it one of just a handful of companies to have have broken through that barrier in market valuation.
"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO 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 and provide the best rental and recharging experience for leisure and business customers around the world."
Hertz itself exited bankruptcy only in June of this year, after a tumultuous period that dated back to the start of the pandemic that pushed the rental giant, and others, into uncharted waters as travel came to a standstill in the early months of the outbreak. Like other rental companies, Hertz moved to liquidate a large portion of its fleet, also closing locations in the process.
The drastic move by Hertz and other rental companies saw a dramatic reversal early this spring as travel rebounded, but rental car companies were now short on cars and locations, leading to some significant price hikes for available vehicles. The rental industry is still slowly rebounding, now hampered by the chip shortage crisis that has prevented almost all automakers from operating at peak capacity. As a result, rental car fleets are not expected to recover to needed levels for quite some, until late 2022 at the latest, based on current trends.