Hertz ended last 12 months with far fewer Tesla vehicles in its fleet than planned when the rental-car company was plotting its late 2021 stock listing.
In an annual regulatory filing Tuesday, Hertz Global Holdings Inc. said its rental fleet within the Americas peaked at 428,700 vehicles last 12 months, and that Teslas were 11% of its fleet. Meaning Hertz had fewer than 50,000 Teslas in its fleet — lower than half the 100,000 the corporate said it could order by the tip of 2022.
Hertz’s October 2021 announcement of its Tesla order sent the electric-vehicle maker’s valuation soaring past $1 trillion for the primary time. It also helped drum up interest within the rental-car company, which staged its post-bankruptcy public offering two weeks later.
Elon Musk tempered Tesla’s stock rally somewhat days after Hertz made its announcement, tweeting that no contract had been signed and that the EV maker had much more demand than production. Tesla’s market capitalization was $616.2 billion on the close of trading Monday.
Hertz’s filing provides some clues as to why it’s added far fewer Teslas than the automotive renter said it could order. The primary risk factor the corporate lists pertaining to its EV initiatives is that the strategy is dependent upon the “ability to secure adequate vehicle supply inside the time-frame we, and our customers, expect.”
One other factor which will have come into play: Tesla raised prices on several occasions last 12 months, which might need made acquiring cars costlier than Hertz expected. That’s less of a difficulty after Tesla slashed prices across its lineup last month.