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Irish Independent
Irish Independent
Craig Trudell and David Welch

Hertz bought just half the number of Teslas it had planned for its fleet

Elon Musk, chief executive officer of Tesla. Photo: Bloomberg

Hertz Global Holdings ended last year with far fewer Tesla vehicles in its fleet than planned when the rental-car company was plotting its late 2021 stock listing.

In an annual regulatory filing, Hertz said its rental fleet in the Americas peaked at 428,700 vehicles last year, and that Teslas were 11pc of its fleet.

That means Hertz had fewer than 50,000 Teslas in its fleet, less than half the 100,000 the company said it would order by the end of 2022.

Hertz's October 2021 announcement of its Tesla order sent the electric-vehicle maker's valuation soaring past $1trn for the first time. It also helped drum up interest in the rental-car company, which staged its post-bankruptcy public offering two weeks later.

Tesla CEO Elon Musk tempered his firm’s stock rally somewhat days after Hertz made its announcement, tweeting that no contract had been signed and that the EV maker had far more demand than production. Tesla's market capitalisation was $616.2bn at the close of trading on Monday.

Hertz's filing provides some clues as to why it added far fewer Teslas than the car renter said it would order. The first risk factor the company lists pertaining to its EV initiatives is that the strategy depends on the "ability to secure adequate vehicle supply within the time frame we, and our customers, expect".

Another factor that may have come into play is that Tesla raised prices on several occasions last year, which might have made acquiring cars costlier than Hertz expected. However, Tesla slashed prices across its lineup last month.

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