Tesla shares rose nearly 7% after news that Hertz is ordering 100,000 vehicles to expand the elective vehicle rental fleet, according to a news release by Hertz on Monday.

  • News of the proposed agreement brought Tesla’s stock to over $970 in early trading, just a day after the shares reached $900. The stock is now up nearly 5%.
  • The agreement, which is expected to generate $4.2 billion for Tesla, is the largest purchase of electric vehicles.
  • Bloomberg also indicated that the cars are scheduled for delivery within the next 14 months and will be available to customers in the United States and sections of Europe as early as November.
  • The deal comes nearly over a year after Hertz had filed for bankruptcy protection over the pandemic as demand for travel and rental vehicles plunged.

In the current year, investors from Knighthead Capital Management and Certares Management stated that they were taking over the company. TSLA up +4.89%, HTZZ up +4.41%