Hertz (HTZ) is moving forward with its electric vehicle (EV) options with Tesla (TSLA) once again.
First spotted by the EV blog Electrek, Hertz has added Tesla’s Model Y crossover to its electric vehicle offerings on the company’s website. Previously, only the Tesla Model 3 was available for rental.
So far, Model Ys are available for rental only at select DC (Dulles), Florida, California and Georgia airports.
Hertz may add more Model Y locations in the future, but it wouldn’t be out of the question for Hertz to announce a splashy move before such a deal is set in stone.
Think back to last year when Hertz announced it would be electrifying its rental car fleet with a huge order for 100,000 Tesla Model 3 sedans. Hertz even signed NFL star Tom Brady to make the announcement in a flashy ad.
The news sent shares of Hertz and Tesla skyrocketing, with Tesla hitting a new all-time high and surpassing the $1 trillion market capitalization milestone. Hertz, one of the first meme stocks before its bankruptcy, was once again on WallStreetBets’ reddit radar.
Then, in a surprising twist, Tesla CEO Elon Musk poured cold water on the so-called deal, saying there was no real deal between Hertz and Tesla, and that Hertz was just a regular customer like any other fleet buyer.
It’s also unclear if Hertz’s Model Ys are actually part of the 100,000 Tesla Model 3 order announced by Hertz last year. As of this article’s publication, Hertz has not returned an official request for comment.
Hertz recovery plan
News of the addition of the Model Y to the fleet comes at an inflection point for Hertz as its turnaround plan gets underway. Just last month Hertz announced that Stephen Scherrformer chief financial officer of Goldman Sachs, would be its new CEO, replacing Mark Fields, interim CEO and longtime director of Ford (F).
And last month, when Hertz announced its earnings which beat Wall Street estimates for the fourth quarter, some analysts were hesitant to recommend the stock. Morgan Stanley analyst Billy Kovanis noted that this could be a good entry point for the stock, but remains cautious due to price pressure.
“Although we remain equally weighted, we are seeing a positive risk/reward spread with a compelling ~25% upside to our price target,” Kovanis said in a note last month, despite his price target lowering. from $27 to $25. “For us to be more optimistic, we would need more conviction that prices can remain structurally higher than before covid, as well as more % upside on the name.”
Hertz and Tesla stocks are both slightly higher today at noon.
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