Tech

Uber will offer up to 50,000 Teslas to its drivers through Hertz rental deal

Key Points
  • Hertz just ordered 100,000 of Tesla's electric vehicles to add to its rental fleet.
  • Uber announced Wednesday that it will have access to up to 50,000 of those for drivers to rent by 2023.
  • Starting Monday, Uber drivers can rent Teslas through Hertz's rental program in Los Angeles, San Francisco, San Diego and Washington, D.C.

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Tesla Model 3
Source: Tesla

Uber announced early Wednesday that Hertz, which just ordered 100,000 Teslas, will supply half of that fleet by 2023 to Uber drivers who want to rent the cars.

Uber shares closed down 2.8%. Shares of Tesla closed up 1.9%.

Uber said the deal is a step toward its zero-emissions goal and will offer its drivers a way to increase earnings by saving on gas costs.

Starting Monday, Uber drivers can rent 2021 Tesla Model 3 cars through Hertz's rental program in Los Angeles, San Francisco, San Diego and Washington, D.C. It will expand nationwide in the following weeks.

The company said Tesla rentals will start out at $334 a week, excluding taxes and fees, but pricing will decrease to $299 or lower over time. Initially, the company will require drivers have at least a 4.7-star rating and a minimum of 150 trips.

"While this partnership is a step forward to advance electrification on the Uber platform, it's important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle," Andrew Macdonald, SVP of mobility and business operations, said in a statement.

The partnership with Uber comes on the back of a big week for Tesla. The deal with Hertz, which will bring in a reported $4.2 billion for Tesla, is the largest-ever purchase of electric vehicles, Bloomberg previously reported.

That helped catapult Tesla's market cap to $1 trillion for the first time, joining other giants including Apple and Amazon.

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