Tesla was the only EV choice for Hertz

Hertz goes with Tesla

The news that Hertz is purchasing 100,000 Tesla's has pushed the stock above $1000 its market cap over $1 trillion.

This deal was an excellent move by Hertz and about the best one to get into the EV game that they could have made.

#1. The Tesla Brand

Tesla is a household brand, yet it has no advertizing budget. Tesla is also struggling to keep up with vehicle sales, achieving a 73% increase in vehicles shipped between 2020 Q3 and 2021 Q3.

Hertz has gained a unique association with the Tesla brand. Interested in renting an EV or a Tesla? Hertz is that company now.

#2. Worry free trips due to Tesla's charging network

Charging on trips is one of the most stressful parts about having an EV, although this is getting better each year. No one worries about driving someplace and not finding a gas station but finding a charging station is a real concern with an EV, even in 2021.

When I got a Tesla Model S in 2016 there were far fewer charging stations. On a ~180 mile trip from MA to CT to visit my parents there have been several new charging stations installed since 2016. These include Charlton MA, Framingham MA, West Hartford CT, etc. Back in 2016 there was only Auburn MA and Hartford CT.

Tesla recognized that charging was a key part of EV adoption and has spent billions on their network of fast charging stations called Superchargers (https://www.tesla.com/supercharger), some 25,000 worldwide. Hertz customers can rent a Tesla and travel relatively worry free throughout a number of countries, finding places to quickly recharge.

These are Tesla specific charging stations however, with Tesla specific connectors, voltages, and communication protocols. For other EV owners the situation is a bit more nerve racking. While EV manufacturers are building this infrastructure out it's not yet at the coverage provided by Tesla. Ford is building its Blue Oval charting network and has an online planner for its Mach-E. GM partnered with EVGO.

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