Tesla (TSLA) rental demand looks to be off to a good start for Hertz (HTZ).
“Demand is very strong,” Hertz CEO Stephen Scherr said in an exclusive interview with Yahoo Finance Live on Tuesday (video above). “We are seeing demand not only among leisure travelers, but also among corporate travelers. In fact, companies want their employees to ride electric vehicles to meet their own carbon footprint targets. .”
In late 2021, Hertz signed a deal to purchase 100,000 Tesla Model 3s for its fleet by the end of 2022. The company then added the Tesla Model Y to the mix. Besides Tesla, the company recently signed his EV deals with General Motors (GM) and Polestar (PSNY).
The company aims to make 25% of its fleet EVs by the end of 2024. About 5% of vehicles are now electric, Scherr said.
Given the influx of driver-friendly EVs and strong travel demand, Scherr put a bright tone on the outlook for holiday season bookings.
Scherrer, who took over as CEO of Hertz earlier this year after serving on the board for many years at Goldman Sachs, said: .
Hertz shares rose on Tuesday after the car rental company announced a new EV charging station deal with oil giant BP.
Hertz plans to install thousands of charging stations across the country by the end of 2023 as part of the deal, and Scherr said it is looking for similar charging station deals.
“One of the real issues where working with BP is an important step is not only are they trying to build charging stations (mostly fast chargers at our facility), but their energy management tools and That’s what we’re trying to overcome with software: range anxiety,” Scherr said.
Brian Sotzi general editor, Yahoo Finance anchorFollow Sozzi on Twitter @BrianSozzi and LinkedIn.
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