Tesla has just received the single largest order for electric vehicles in the world, after car rental giant Hertz said on Monday it had placed an order for 100,000 Teslas by the end of 2022, which, according to Bloomberg, would be worth $4.2 billion in revenues for the U.S. EV manufacturer.
“As consumer interest in electric vehicles (EV) skyrockets, Hertz today is announcing a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world. This includes an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company’s global operations,” Hertz said in a statement.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, interim CEO at Hertz, which emerged from bankruptcy a few months ago.
With the current order, EVs will account for more than 20 percent of Hertz global fleet, the company said.
Following news of the order, Tesla’s (NASDAQ: TSLA) stock soared by 4.5% pre-market on the NASDAQ and was set to open at a record high at over $950.
Shares were also boosted by new data showing that that Tesla’s Model 3 became Europe’s best-selling car in September, outselling gasoline-powered cars.
In September, Tesla’s Model 3 became the first EV to top the general model rankings, outselling established brands including Fiat, Nissan, and Seat, automotive business intelligence provider JATO Dynamics said on Monday.
“This is both first time that an EV has led the market and the first time that a vehicle manufactured outside of Europe has occupied the top spot,” JATO Dynamics said, noting that the strong performance of the Model 3 “is in part explained by Tesla’s intensive end-of-quarter sales push.”
In addition, Morgan Stanley analyst Adam Jonas raised his price target on Tesla to $1,200 and made a “bull case” for $1,600 Tesla stock.
“The next 12 months can demonstrate Tesla’s manufacturing leadership, a step change in costs/complexity and higher growth in the vehicle user base. Our $1,200 price target implies roughly 1⁄2 the company’s growth target, a ‘constrained’ China and virtually no autonomy,