Uber Partners With Hertz For Tesla Rental Program For Drivers

And the Tesla (NASDAQ: TSLA) pump goes on. The company is currently up 1.77% in early morning trading to $1,036 following an announcement by Hertz. It appears that Hertz and Uber (NYSE: UBER) have entered an arrangement in relation to the recent 100,000 Tesla vehicle purchase order conducted by the car rental company.

Under the current arrangement entered by the two firms, Hertz will make up to 50,000 Teslas available to Uber by 2023 for drivers to utilize when driving for Uber. In making the announcement, both firms touted their commitment to zero-emission goals.

Hertz’s order of 100,000 Tesla’s is expected to see delivery begin next month, with the vehicles becoming available in major US markets initially before expanding nationwide. The rollout of the program with Uber will match this timeline, with Tesla’s becoming available for rent by Uber drivers starting next month in the same markets.

The arrangement was touted as the best deal for Uber drivers, with the program offering “gas savings, higher earnings potential, access to the Tesla Supercharger network,” while Uber also already offers certain discounts and incentives to EV vehicles, which are on top of the current program.

The program is slated for an initial 50,000 vehicles, however it was said that it could expand to as much as 150,000 Teslas over the next three years, subject to availability and factors outside its control. The program will see a preferred weekly rate offered to Uber drivers, which is said to include insurance, basic maintenance, and unlimited miles.

Uber is currently up 2.13% in pre-market trading to $47.00.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.