Tesla Wins Record Order For Electric Cars From Hertz

Elon Musk's Tesla Inc. has received its biggest-ever order, as Hertz announced it would buy 100,000 electric rental cars to go more eco-friendly just months after emerging from bankruptcy, Subrat Patnaik and Sanjana Shivdas reported for Reuters.

Photo Insert: Tesla's cheapest Model 3 sedan starts at about $44,000, making this order worth about $4.4 billion if the entire order were for its mass-market sedan.

Tesla stock was up 4.3% in premarket trading and was set to open at a record high following the order. Shares were also buoyed by news of the company's Model 3 becoming the first electric vehicle to top monthly sales of new cars in Europe.

The order from Hertz comes as Tesla is coping with a backlog of unfulfilled orders for its vehicles and continuing supply chain disruptions, but it does solidify the mainstream appeal of electric cars.

"Our backlogs are continuing to grow and average customer wait times are extending," Chief Financial Officer Zach Kirkhorn told investors last week.

The world's most valuable automaker delivered a record 241,300 electric cars globally in the third quarter, even as it warned that supply chain headwinds would pressure margins.

Tesla's cheapest Model 3 sedan starts at about $44,000, making this order worth about $4.4 billion if the entire order were for its mass-market sedan. With the current order, scheduled for delivery by the end of 2022, Hertz said EVs will make up more than 20% of its global fleet.

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