Hertz Joins a List of Companies Wary of the Environmental Consequences

Tesla now is valued at over a trillion-dollar based on the latest valuation done after a leading global car rental company Hertz made a purchase order of approximately 100,000 electric vehicles. The valuation came just after two years when Tesla got valued at slightly above $100 billion. The success achieved by Tesla took some other companies like the e-commerce giant started by Jeff Bezos, Amazon, a whole eight years to gain.

Currently, Tesla joins Google and Apple, among other companies with a valuation of above $1 trillion. Hertz Global Incorporation now joins a list of companies wary of the environmental consequences of the products they use in their daily operations. Hertz is environmentally friendly conscious, and they are committing to secure over 100,000 units of electric cars made by the famous automaker Tesla.

The deal led to a tremendous rise in Tesla stock with an estimated increase of about 13 percent. The consequence of rising in stock value led to Tesla joining the one trillion-dollar valuation. At the same time, Tesla and its chief executive officer, Elon Musk, are committed to offering their clients an alternative option to combustion engine vehicles that are known for emitting high carbon content to the atmosphere. It’s important to note that the world is currently grappling with changes in climate conditions due to global warming resulting from high carbon content in the atmosphere.

In an interview attended by the Associated Press and addressed by the Hertz Global incorporation interim chief executive officer, the senior manager alluded that Tesla is expected to deliver the first batch of Tesla Model 3 electric cars to Hertz in late November this year. He also states that the final consignment of Tesla Model 3 electric cars will reach their site by December of 2022 if everything goes as planned.

Though Mark Fields, the Chief Executive officer at Hertz Incorporation, failed to reveal how much the car rental service provider is investing in the deal, sources indicate that the company is willing to invest close to $4 billion. It came from when the largest car rental provider in the United States went from bankruptcy protection that ended in early June this year. Despite that, the company has a healthy balance sheet, and its capital base is sufficient to support such a transaction. Tesla is retailing its Model 3 at approximately $40000, and with the 100,000 units that Hertz Global ordered, Tesla gets bound to make about $4 billion in this deal. Rivian is the mother startup that delivered such a large consignment of electric cars to Amazon in 2019.

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