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The move by Hertz Global Holdings to order 100,000 Teslas by the end of 2022 has sent its shares surging and looks like a winning move for both companies.
Hertz (ticker: HTZZ) will be able to expand what has been a constrained fleet size and will likely get premium rental prices for the desirable Teslas. For Tesla (TSLA), the order, the largest by a rental-car company, opens up a new market and will allow Hertz’s big customer base to try out a Tesla and potentially become buyers of the electric vehicles.