Hertz Global Holdings Inc.’s $4.2 billion deal with Tesla Inc. equates to an order for 100,000 cars. That’s a commitment to the future of EVs that has thus far been unrivaled.
That’s a huge order for Tesla, a win for Hertz and an easy entry to EVs for curious consumers.
A flashy Hertz ad campaign starring seven-time Super Bowl Champion Tom Brady, won’t hurt the effort either.
“This is an opportunity not only to fix the business, but also to employ a strategy that allows us to play a central role in development of the modern mobility industry,” Mark Fields, Hertz’s new interim chief executive officer and a former CEO of Ford Motor Co., said in an interview. “One of our objectives is to lead in the adoption of electric vehicles.”
Investors, as they’re want to do, reacted accordingly.
The deal, first reported Monday by Bloomberg News, sent Tesla soaring to a $1.03 trillion valuation and added about $1.2 billion in market value for Hertz, which is just four months out of bankruptcy protection. Tesla shares rose 13 percent to a record $1,024.86, while shares in the rental-car company gained 10 percent to $27.17. As is typical in the investment world, all is not always as it seems.
Even Tesla CEO Elon Musk said in Twitter post that he was a bit surprised by the “strange” jump in value, considering that his automaker is already maxed out in production and sales.
Tesla, a master of brand management and amplification has relied on word-of-mouth to sell cars, to date. The Hertz ad campaign where Model 3 rentals will be the focus of Brady’s message, is sure to be well received by hordes of potential buyers.
Two TV spots, airing today — titled “Plugged In” and “Speed” – feature Brady renting, recharging and driving a Tesla from an airport. The meme for the commercials is Brady’s signature exclamation, “Let’s Go!”