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00 Tesla’s, which will constitute 20% of its fleet. The company is also digitizing its operations in hopes of making a more seamless, faster experience for its customers.Hertz’s order also includes new EV charging stations across the US, which is huge.<h2 id="4f84">The vehicle significance for Tesla</h2>This deal is monumental for Tesla’s future for many reasons.This is the first fleet order Tesla ever announced, signifying there could be more in the future.Hertz is the first to order and it's only time before competitors Avis and Enterprise follow suit. Rental car companies will soon switch their fleets to EV cars for a variety of benefits.EVs help these companies meet their <a href="https://readmedium.com/4-green-investments-under-the-biden-administrations-renewal-energy-push-46288fb27269">environmental goals</a> and are cheaper to operate. But the main benefit — EVs hold their value better than gas-powered cars and rental car companies make significant revenue selling their used vehicles.Uber might even buy models to help with their plans to be zero-emission by 2030.The demand for EVs is only growing.Global EV sales <a href="https://newsroom.hertz.com/2021-10-25-Hertz-Invests-in-Largest-Electric-Vehicle-Rental-Fleet-and-Partners-with-Seven-Time-Super-Bowl-Champion-Tom-Brady-to-Headline-New-Campaign">increased 200 percent</a> in the last year and 40 percent of U.S. consumers said they would consider an electric vehicle for their next car.Hertz’s CEO, Mark Fields, also anticipates increased demand for EVs,Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest<h2 id="9876">The charging station significance for Tesla</h2>People who bash Tesla and scream the stock is overvalued always look at its low vehicle sales. But Tesla is more than an automobile company. They’re more than a data company too.They're an electric company, this century’s standard oil.While the US government l

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ikely won’t allow a monopoly that big again, Tesla already rules the space and will continue to do so in the near future.<a href="https://hbr.org/2021/01/how-teslas-charging-stations-left-other-manufacturers-in-the-dust">Tesla is ahead of all its competitors</a> in terms of charging stations.And anyone who has ever driven a car with their gas light one knows the importance of <a href="https://readmedium.com/how-to-save-money-at-the-gas-station-67787ae4ab25">gas stations</a>. Except Tesla meets the needs for electric vehicles. It won't be long before we see electric stations on street corners, similar to how we see gas stations around.Part of Hertz’s order is for EV charging stations — Hertz is installing thousands of chargers throughout its location network. Tesla currently has around 3,000 supercharging stations throughout the US and Europe.One of the biggest fears for those wanting to buy EVs is the lack of convenient charging stations. Not anymore.Increased competition from automobiles actually helps Tesla. Those consumers use Tesla’s charging stations as well!Tesla is not only working to build the fastest battery chargers, but also build an expansive network of stations throughout the country. And the increased EV demand from rental car companies only helps.<h2 id="4c15">Final Thoughts</h2>The <a href="https://readmedium.com/biden-electric-vehicles-to-be-50-of-us-auto-sales-by-2030-f224dc40b315">auto industry is turning electric</a>. There isn’t much we can do to stop it. Tesla was at the forefront and has an advantage over its competitors, especially when it comes to charging stations.Let’s not forget this deal also helps Tesla’s revenue tremendously. As a company that had $31.5 billion in revenue in 2020, <a href="https://www.barrons.com/articles/how-tesla-hertzs-order-51635266440">this$ 4 billion order makes a sizeable impact</a>.In fifty years from now who knows will emerge as the dominant player in the EV market. But Tesla is certainly leaving their mark on the industry’s history.</article></body>

How Tesla Turned a $4 Billion Order into $175 Billion

Tesla’s stock might be perpetually overvalued

You might have missed the news — but Tesla’s stock has been on a tear this week. From Friday’s closing price, the stock is up almost 12%.

Most of this is due to the news that Hertz will buy 100,000 Teslas for their fleet. But this deal with Hertz, which is reported at $4 billion, is worth so much more.

Oh, and including last week Tesla’s been killing it. The stock is up 17% the last five days, starting with Wednesday (10/20), where they reported earnings after the market closed. The earnings were impressive, although they did mention upcoming challenges related to the semiconductor chip shortage.

There are several reasons this deal has impacted Tesla so much.

Deal with Hertz

Hertz was left for dead a year ago. After filing for bankruptcy due to the pandemic, Hertz now has a market cap back in the billions.

To turn their business around, they are getting innovative.

Starting in November, Hertz’s customers will be able to rent a Tesla Model 3. And by the end of 2022, Hertz will have 100,000 Tesla’s, which will constitute 20% of its fleet. The company is also digitizing its operations in hopes of making a more seamless, faster experience for its customers.

Hertz’s order also includes new EV charging stations across the US, which is huge.

The vehicle significance for Tesla

This deal is monumental for Tesla’s future for many reasons.

This is the first fleet order Tesla ever announced, signifying there could be more in the future.

Hertz is the first to order and it's only time before competitors Avis and Enterprise follow suit. Rental car companies will soon switch their fleets to EV cars for a variety of benefits.

EVs help these companies meet their environmental goals and are cheaper to operate. But the main benefit — EVs hold their value better than gas-powered cars and rental car companies make significant revenue selling their used vehicles.

Uber might even buy models to help with their plans to be zero-emission by 2030.

The demand for EVs is only growing.

Global EV sales increased 200 percent in the last year and 40 percent of U.S. consumers said they would consider an electric vehicle for their next car.

Hertz’s CEO, Mark Fields, also anticipates increased demand for EVs,

Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest

The charging station significance for Tesla

People who bash Tesla and scream the stock is overvalued always look at its low vehicle sales. But Tesla is more than an automobile company. They’re more than a data company too.

They're an electric company, this century’s standard oil.

While the US government likely won’t allow a monopoly that big again, Tesla already rules the space and will continue to do so in the near future.

Tesla is ahead of all its competitors in terms of charging stations.

And anyone who has ever driven a car with their gas light one knows the importance of gas stations. Except Tesla meets the needs for electric vehicles. It won't be long before we see electric stations on street corners, similar to how we see gas stations around.

Part of Hertz’s order is for EV charging stations — Hertz is installing thousands of chargers throughout its location network. Tesla currently has around 3,000 supercharging stations throughout the US and Europe.

One of the biggest fears for those wanting to buy EVs is the lack of convenient charging stations. Not anymore.

Increased competition from automobiles actually helps Tesla. Those consumers use Tesla’s charging stations as well!

Tesla is not only working to build the fastest battery chargers, but also build an expansive network of stations throughout the country. And the increased EV demand from rental car companies only helps.

Final Thoughts

The auto industry is turning electric. There isn’t much we can do to stop it. Tesla was at the forefront and has an advantage over its competitors, especially when it comes to charging stations.

Let’s not forget this deal also helps Tesla’s revenue tremendously. As a company that had $31.5 billion in revenue in 2020, this $4 billion order makes a sizeable impact.

In fifty years from now who knows will emerge as the dominant player in the EV market. But Tesla is certainly leaving their mark on the industry’s history.