Hertz Suggests 'First Wave Of National Rollout' Of Tesla EVs On Track, Prepares To Expand To 'New Markets'

Hertz Global Holdings HTZWW told Benzinga on Tuesday it is planning a wider national rollout of Tesla Inc TSLA electric vehicles in more markets next year for its fleet and Model 3 units have "started to arrive" as part of a large order the car rental company had placed earlier this year.

What Happened: Hertz has been offering Tesla's most affordable vehicle, the mid-size electric sedan Model 3 for rent on its booking platform but most of the options appear sold out.

“The initial deliveries of the Tesla Model 3 have already started to arrive as part of the first wave of our national rollout that will continue to expand to new markets next year,” a Hertz spokesperson said, without offering any further breakup on the initial volumes it has secured so far.

The car rental company’s website says it is adding more electric vehicles on a daily basis and directs those who are unable to find a booking to the traditional, gas-powered options instead.

Hertz is currently offering a free charging option for customers who book a Model 3 before Feb. 1.

See Also: Tesla Analyst Says 2022 Could Be An Inflection Point For EV Maker; Sees Capacity Double By End Of Year

Why It Matters: Hertz in October revealed that it plans to grow its fleet of battery-electric vehicles with “an initial order of 100,000 Teslas by the end of 2022.” The large electric vehicle order was seen as a bold move from a company that had only months ago emerged out of bankruptcy.

See Also: Tesla Q4 Sales Expected To Jump 43% On Robust December Deliveries: TrueCar

The deal announcement had sent shares of both companies higher, leading to Tesla stock joining the $1 trillion market capitalization club for the first time.

Hertz followed up with an announcement of a partnership with ride-sharing company Uber Technologies UBER to rent out 50,000 Teslas exclusively to drivers by 2023.

As shares climbed higher, Tesla CEO Elon Musk later tweeted to say that Tesla had not yet signed a contract with Hertz, adding that it would sell the electric cars at list price to the car rental company.

Uber had previously in a blog post said Model 3 units would be available for booking in Los Angeles, San Francisco, San Diego and Washington, DC, from Nov. 1 onwards, with plans for a nationwide expansion in the following weeks. 

Price Action: Hertz shares closed 3.32% lower at $16.3 a share on Tuesday. The stock is up 36% so far this year.