Hertz Global Holdings, Inc. (NYSE:HTZ) announced today in a press release that it will start offering the Tesla Model S and the Tesla Roadster as part of its ultra high-end fleet of rental cars, available in Los Angeles, Las Vegas, Miami and about 30 other locations. Unfortunately, it’s going to be rented out in the same class as Ferrari, Bentley, and Lamborghini, so you’ll have to pay top dollar if you want to drive one of the popular electric cars for yourself.
Hertz expecting for growth with Tesla
Hertz Global Holdings, Inc. (NYSE:HTZ) is touting the decision as a part of its commitment to sustainability and a low company-wide average gas mileage, but offering expensive Tesla’s at the high end probably won’t have that much of an impact on how much fuel Hertz customers really use. The novelty of offering electric cars may bring in a few more clients, but it’s hard to believe this is going to provide the company with much more growth than we’ve been expecting.
This is a much bigger deal for Tesla Motors Inc (NASDAQ:TSLA), which has turned its corporate image around entirely this year, going from a long-shot company with vocal supporters to an established firm that we expect to stick around for a long time (even if its stocks may be slightly overbought). For Hertz Global Holdings, Inc. (NYSE:HTZ) to offer its cars to customers is a vote of confidence not only in the cars themselves, but also in Tesla’s network of recharging stations. Also, the possibility of eventually having a recharging station at or near every major airport would be a huge boon to the company.
Deal to make Tesla cars available worldwide
If Hertz Global Holdings, Inc. (NYSE:HTZ) is happy with the arrangement, and especially if Tesla Motors Inc (NASDAQ:TSLA) can produce a cheaper electric car as they intend, this deal could eventually make Tesla cars available all around the world. Hertz operates in more than 8000 locations and hundreds of airports. Giving people a low-risk way to drive around a Tesla Roadster for a few days could easily attract new customers and help the company compete in the broader auto market.
Before that happens, Tesla Motors Inc (NASDAQ:TSLA) will need to continue expanding its support infrastructure. Plans have been announced for recharging stations in parts of Europe, but rivaling the ease of gas stations is a very long-term goal.