by Fred Lambert
October 28, 2021
Hertz CEO Mark Fields revealed that its deal to supply Tesla vehicles to Uber includes an option for 100,000 more Tesla Model 3s, which would double its total order to 200,000 vehicles. Earlier this week, Hertz announced that it ordered 100,000 Model 3 vehicles from Tesla as part of a new plan to electrify its fleet.
In the last few days, we have been learning more about this deal. Yesterday, we learned that only half of those 100,000 vehicles will be used in Hertz’s fleet of vehicles available for rent to regular customers at airports and different locations.
Uber CEO Dara Khosrowshahi, who was also on the interview, was asked if he is confident that enough drivers on his network would take them up on the offer to rent the Model 3 for ~$300 a week from Hertz.
He confirmed that he was very confident based on their data, and that’s when Fields added: I would add that part of our agreement is that if this program is successful, and we believe it will, that over the next three years, it could grow to 150,000 Teslas that can be provided by Hertz to Uber as well.
Currently, the deal involves 50,000 Model 3s out of Hertz’s order of 100,000 Model 3 vehicles to be delivered by Tesla by the end of next year.
Increasing the deal with Uber to 150,000 vehicles over the next three years would require Hertz to order an additional 100,000 vehicles from Tesla if they plan to still use the other half of their initial order to update the main rental fleet.
Fields was also asked about ordering the Full Self-Driving (FSD) package on the vehicles, and he confirmed that for the deal with Uber, the drivers won’t have access to the FSD package.