Shares of Hertz Global Holdings Inc (NASDAQ: HTZ) are up 10% on Monday after the car rental company announced a big deal with the Swedish EV maker, Polestar.
Hertz to buy 65,000 Polestar vehicles
Hertz said it will buy 65,000 electric vehicles from Polestar over the next five years. Discussing the announcement on CNBC’s “Squawk Box”, CEO Stephen Scherr said:
It’s a part of our ambition to become the largest EV fleet in North America. We’re looking to do acquisitions and transactions with all OEMs. Polestar has an impressive automobile that has opportunity to bring diversification to our fleet and to our business.
Electric vehicles are now set to become a part of Hertz’ fleet in Europe and North America before the end of 2022. Late last year, the Florida-based company announced a similar deal with Tesla.
What Polestar will get out of this deal
According to Thomas Ingenlath – chief executive of the Swedish EV startup, the agreement with Hertz is valuable and “not” just in terms of the boost to revenue. On the same interview, he said:
It’s a great opportunity for customers to experience a Polestar. They have a chance to test drive our car and will definitely help us with brand awareness. It’ll help people experience driving an EV. It’s an important step towards sustainable mobility.
Last year, Polestar sold 29,000 vehicles and expects that number to grow by ten folds by the end of 2025. The Swedish company could go public later this year.
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