Hertz has announced that it made a deal with Tesla to buy 100,000 Tesla cars. Hertz, one of the most well-known car rental firms in the world that just emerged from bankruptcy, made a deal that most knowledgeable sources estimate to be worth $4 billion. This is a bold move that could redirect the perception of EVs.

More to follow?

Will other big players in the auto-rental industry follow Hertz? Well, the economics of the industry might give top companies like Enterprise Holdings and Avis Budget Group an edge when they go slow on electric vehicles. Just think about the amount of money they make when car renters forget to return cars with full gas tanks.

However, the deal by Hertz and Tesla could change the top companies’ view of the use of EVs. It is expected that major car rental companies will have to adjust their strategies and include an EV option. Maybe the competitors might have anticipated this day and planned something, but Hertz’s announcement means that they have to implement it sooner than they had planned.

Auto industry analyst John Healy of Northcoast Research says that it is not a surprise that Hertz is among the first to place a big bet on EVs. Healy said that there hasn’t been a lot ongoing in the EV sector and the decision by Hertz to purchase 100,000 will change the ecosystem.

Tesla’s values top $1 trillion

The biggest winner of this deal, however, is Tesla. Soon after the announcement, the share price of Tesla gained about 13% to finish at $1,024.86. This deal affected the stock trading of Tesla’s stock with many investors showing interest in the company’s stake. In a Tweet boasting the company’s value getting higher than a trillion, Elon Musk – Tesla’s chief executive – tweeted “Wild $T1mes!”.

Even though both Tesla and Hertz have not confirmed the value of the deal, Tesla could generate about $4 billion of revenue from it. Car rental companies with large vehicle orders often demand steep discounts from car manufacturers. However, Elon Musk reiterated that his company hadn’t entered into a discount deal with Hertz. He clearly stated that cars sold to Hertz had been at no discount, but rather at the normal retail price.

50,000 reserved for Uber drivers

This could have an impact on the future of EVs in the consumer market. According to a 2015 survey from Enterprise Holdings, about 62% of the respondents said that a positive experience with a specific car model would want them to buy the car. This could see the EV market grow if the 50,000 cars to be used by U