On Monday, Tesla Inc. (TSLA) stock shot up 13% (now over $1,000 per share) after car rental company Hertz (HTZZ) announced it purchased 100,000 Tesla cars in attempts to “shake-up” the car rental business.
TSLA stock coincidentally hit the milestone $1 trillion market cap for the first time as well – joining only Apple, Amazon, and Microsoft in this elite class.
The cars will be delivered over the next 14 months, most of which are Model 3's – where Tesla earns its highest profit margins.
Hertz is going to begin building its own charging station network. And all Hertz customers will have access to the over 3,000 Tesla super-charging stations around the world.
Hertz stock shot up as much as 13.4% on the news.
In my humble opinion, this is likely the first of many dominoes to fall. Why wouldn't other car rental companies follow Hertz now that they know their stock will get a boost as well?
You have Enterprise, Avis, Alamo, Budget, Turo, and more… All taking notice of what this deal could do for their own businesses.
It's hard to find reasons not to make a deal with Tesla right now if you're the CEO of any of these companies.
And if you're Tesla, why wouldn't you want every car rental business to rent out your cars?
This deal is bullish for Tesla, rental car companies, and the entire EV industry moving forward.
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