Hertz Suggests 'First Wave Of National Rollout' Of Tesla EVs On Track, Prepares To Expand To 'New Markets'

$HERTZ GLOBAL HOLDINGS INC C/WTS 30/06/2051 (TO PUR COM) (HTZWW.US)$ on Tuesday it is planning a wider national rollout of $Tesla (TSLA.US)$ electric vehicles in more markets next year as part of its fleet, as it receives the initial deliveries as part of a large order the car rental company had placed earlier this year.

What Happened: Hertz has been offering Tesla's most affordable vehicle, the mid-size electric sedan Model 3 for rent on its booking platform but most of the options appear sold out.

“The initial deliveries of the Tesla Model 3 have already started to arrive as part of the first wave of our national rollout that will continue to expand to new markets next year,” a Hertz spokesperson said, without offering any further breakup on the initial volumes it has secured so far.

The car rental company’s website says it is adding more electric vehicles on a daily basis and directs those who are unable to find a booking to the traditional, gas-powered options instead.

Why It Matters: Hertz in October revealed that it plans to grow its fleet of battery-electric vehicles with “an initial order of 100,000 Teslas by the end of 2022.” The large electric vehicle order was seen as a bold move from a company that had only months ago emerged out of bankruptcy.

The deal announcement had sent shares of both companies higher, leading to Tesla stock joining the $1 trillion market capitalization club for the first time.

Hertz followed up with an announcement of a partnership with ride-sharing company $Uber Technologies (UBER.US)$ to rent out 50,000 Teslas exclusively to drivers by 2023.