Tesla rental demand ‘very, very strong,’ Hertz CEO says

Tesla (TSLA) rental demand seems to be off to a brisk begin for Hertz (HTZ).

“Demand has been very, very strong,” Hertz CEO Stephen Scherr stated in an unique Yahoo Finance Dwell interview Tuesday (video above). “We’re seeing demand not simply amongst leisure vacationers but additionally amongst company vacationers, the place in actual fact companies need their workers in an electrical car to fulfill a few of their very own carbon footprint goals.”

Hertz inked a deal late in 2021 to buy 100,000 Tesla Mannequin 3s for its fleet by the tip of 2022. The corporate has since added the Tesla Mannequin Y to the combination. In addition to Tesla, the corporate additionally not too long ago signed EV offers with Basic Motors (GM) and Polestar (PSNY).

The corporate goals to have 25% of its fleet be EVs by the tip of 2024. At present, about 5% of the fleet is electrical, Scherr stated.

Given the inflow of driver-friendly EVs and strong journey demand, Scherr struck an upbeat tone on the outlook for vacation season bookings.

“Bookings have been optimistic out by the following couple of months, however equally… by the vacation interval the place it is proving fairly sturdy,” stated Scherr, who took over as Hertz CEO earlier this yr after a few years in govt roles at Goldman Sachs.

Hertz inventory received a lift on Tuesday after the rental automobile firm revealed a brand new EV charging station take care of oil big BP. Shares have been up greater than 2% as of two:00 p.m. ET.

Hertz plans to have hundreds of charging stations nationwide by the tip of 2023 as a part of the settlement, and Scherr acknowledged he’s on the hunt for comparable charging station offers.

“One of many actual points why partaking with BP is a vital step is that not solely are they going to construct out charging stations — principally quick chargers on our amenities — however we’re going to use their power administration instruments and software program to kind of overcome vary nervousness,” Scherr stated.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Observe Sozzi on Twitter @BrianSozzi and on LinkedIn.

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