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Tesla-Hertz Blockbuster Deal Paves Way to Take EVs Mainstream

  • Renting first may tip more consumers to buy electric cars
  • Deal creates major customer just as Tesla expands production
Tesla Model 3
Tesla Model 3Photographer: Patrick T. Fallon/Bloomberg
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Hertz Global Holdings Inc.’s $4.2 billion deal with Tesla Inc. is about more than just an order for 100,000 cars. It’s about vaulting electric vehicles into the mainstream.

Not only does Tesla get a huge order at a premium price, it gets a way for the electric-curious masses to test-drive its Model 3. Hertz, meanwhile, gets to tap into the growing interest in EVs while aligning itself with the industry’s leader and sexiest brand. Tesla also will benefit from exposure in a splashy Hertz ad campaign starring seven-time Super Bowl Champion Tom Brady.