Earlier on Monday, Hertz announced that it would buy 100,000 Tesla Model 3 sedans by the end of 2022, as part of its effort to offer the largest electric vehicle fleet in North America.
The company also noted that vehicle charging infrastructure would be erected at its global locations.
In a rare occurrence, Tesla (TSLA) hit and surpassed a $1 trillion market cap on Monday. The jump came shortly after Bloomberg reported that Hertz had inked a deal for Tesla to manufacture and deliver 100,000 electric vehicles to its locations in 150 countries by the end of 2022.
Shares of the stock shot up to around $1,045 per share during mid-day, setting a new record high for the California-based electric vehicle and clean energy company. TSLA stock was valued at around $1,024 per share when markets closed on Monday.
Tesla CEO Elon Musk tweeted his celebration of the milestone ahead of the 4 p.m. ET close, with the blunt: “Wild $T1mes!”
— Elon Musk (@elonmusk) October 25, 2021
Hertz announced on Monday that its order came as an effort to meet a growing demand in the US for environmentally-friendly, tech-forward automobiles. The deal has been valued at some $4.2 billion in revenue for Tesla, and is regarded as the largest purchase of electric vehicles to date.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields in a quoted statement.
The company highlighted Pew research that suggested around 39% of US consumers would consider an electric vehicle for their next purchase.
The survey, which polled 912 US adults born after 1996 (the so-called Generation Z), also reported that 46% of respondents were not too likely, or lacked interest in purchasing an electric vehicle.
As of 2020, over 1.8 million electric vehicles had been registered in the US, according to International Energy Agency data.
“The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world,” Fields added.
Beginning early next month, the first Hertz rental batch of Tesla Model 3 sedans will be available in major US and European markets.