It's electric: Hertz announces big investment in Tesla vehicles; Tom Brady makes the pitch

Laura Layden
Fort Myers News-Press

Hertz plans to electrify its rental fleet in a big way.

On Monday, Hertz Global Holdings, parent of The Hertz Corp., announced plans to offer the largest electric vehicle rental fleet in North America — and one of the largest in the world.

In a news release, the Estero-based company said it will initially order 100,000 Teslas by the end of 2022, with plans to add thousands of its own charging stations across its global network to support them.

Tom Brady on the set of the Hertz's "Let's Go" campaign celebrating the future of mobility by making electric vehicle rentals fast, seamless and more accessible than ever before.

Hertz has teamed up with seven-time Super Bowl champion and entrepreneur Tom Brady to spread the word about the company's efforts to make electric vehicle rentals "fast, seamless and more accessible" through a multi-media promotional campaign.

"The ads will run on connected TV platforms, such as Hulu and YouTube, national cable, social media and online," said Lauren Luster, Hertz's director of communications.

News of Hertz's big investment comes just a few months after the company emerged from Chapter 11 bankruptcy, with a mission to "chart a dynamic, new course for travel, mobility and the auto industry."

Mark Fields, Interim CEO of Hertz.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz's interim CEO Mark Fields in a statement. "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."

Starting in early November, customers will be able to rent a Tesla Model 3 at Hertz's airport and neighborhood locations in major markets across the United States, as well as select cities in Europe, with the ability to tap into the automaker's network of 3,000 supercharging stations.

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Hertz said the electrification of its fleet is based on consumer sentiment, citing research from Pew that shows 40 percent of U.S. consumers are likely to consider an electric option the next time they're in the market for a new vehicle.

The company also attributed its investment decision on a global spike in the sale of electric vehicles and long-term commitments by three U.S. automakers to increase sales to 40% to 50% of their business by 2030.

Hertz said it plans to offer a "premium and differentiated rental experience" for the Teslas, including digitized guidance to help customers who are unfamiliar with them get on their way quickly.

Estero-based Hertz plans to electrify its fleet with an initial order of 100,000 Teslas.

Down the road, the company plans to add a dedicated rental booking process for electric vehicles through its mobile app.

With the current order for Teslas, Hertz said electric vehicles would compromise more than 20% of its global fleet. The company expects to have its own fast-charging stations available in 65 markets by the end of 2022 — and in more than 100 markets by the end of 2023.

The company warned, however, "these ambitions could be affected by factors outside of Hertz's control, such as semiconductor chip shortages or other constraints."

Tampa Bay Buccaneers quarterback Tom Brady (12) fires a pass against the Miami Dolphins during the first half of an NFL football game Sunday, Oct. 10, 2021, in Tampa, Fla. (AP Photo/Jason Behnken)

Two new ads – "Plugged In" and "Speed" – that began airing Monday show Brady renting, recharging and using an electric vehicle at a Hertz airport location. The spots use humor and Brady's signature "Let's Go" game-day chant to play up Hertz's expanded offering of Teslas.

Brady joined the Tampa Bay Buccaneers in 2020 and led them to victory in Super Bowl LV earlier this year.

"I've been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious," Brady said in a statement. "I've always loved how easy and convenient Hertz makes it for me when I'm traveling to my favorite places like New York, L.A. and Tampa and can't wait to see what they continue to have in store."

Hertz said growing its fleet of Teslas is a continuation of its pioneering efforts as the first U.S. car rental company to introduce electric vehicles to its fleet in 2011 — and the first to offer a wireless charging system for electric vehicles.

The company did not disclose how much it will invest in the electrification of its fleet. 

Hertz has ordered 100,000 Teslas in move to electrify its fleet.

Bloomberg reported Hertz's initial order is the single largest ever for electric vehicles — and valued it at $4.2 billion in revenue for Tesla.

According to Bloomberg, Hertz eventually plans to electrify most of its fleet.

Shares in Tesla surged to a record high after news broke of Hertz's big purchase.

Likewise, Hertz's shares shot up on the news.

Andrew Hill, president and co-founder of Naples-based Andrew Hill Investment Advisors, Inc., who keeps a watchful eye on Hertz, reacted positively to the news, calling it a "really big deal."

"My emotional reaction is that Hertz is back as a leader in car rental," he said. 

The news, he said, left him with some unanswered questions, however, including how the investment might affect the cost of fleet maintenance for Hertz in the long run.

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Hill said he liked Hertz's choice of Brady as a spokesman for its promotional campaign, describing it as "a nice finishing touch." 

His company's pension plan includes investments in Hertz and Tesla. Additionally, he said, his firm has investments in Tesla for clients and partners.

The Hertz headquaretrs in Estero.

Hertz, an early victim of the coronavirus pandemic, exited bankruptcy at the end of June as a much stronger company, with new equity capital and the elimination of nearly $5 billion in debt.

In the second quarter, the company's total fleet consisted of about 420,000 vehicles.

In addition to its namesake brand, Hertz operates the Dollar and Thrifty car rental services.

In May 2013, the company announced the relocation of its global headquarters from New Jersey to Estero, following the acquisition of the Dollar Thrifty Automotive Group.

The new multimillion-dollar headquarters opened in 2015.