Car rental company Hertz says it will buy 100,000 electric cars from Tesla.
Hertz interim CEO Mark Fields said the Model 3 cars could be ready for renters as early as November, The Associated Press reported.
Fields said the reason for the move was that electric cars are becoming mainstream, and consumer interest in them is growing.
“More are willing to try and buy,” he told AP. “It’s pretty stunning.”
All of the cars should be available by the end of 2022, the company said. When all are delivered, they will make up 20% of the company’s fleet.
Hertz, which emerged from bankruptcy in June, did not disclose the cost of the order, but it could be valued at as much as $4 billion, according to some news reports.
The company said it plans to build its own charging station network, with 3,000 in 65 locations by the end of 2022 and 4,000 by the end of 2023. Renters will also have access to Tesla’s charging network for a fee.
Tesla stock jumped as much as 12% on the news
Some information in this report came from The Associated Press.