Hertz (NASDAQ:HTZ) stock is charging higher on Monday after announcing plans to purchase electric vehicles (EVs) for its fleet from Polestar.
This deal will have Hertz purchasing as many as 65,000 EVs from Polestar over the next five years. Polestar is a premium EV maker in Sweden with its Polestar 2 being the EV that Hertz is purchasing first.
According to Hertz, this will have the Polestar 2 showing up at rental locations in Europe in spring 2022. Customers in North America and Australia will start seeing the EVs sometime late this year.
Hertz’s effort to electrify its fleet has it aiming to provide the EVs to more than just rental customers. It also wants to extend to customers seeking ride-hailing options as well. Its overall goal is to create the largest rental fleet in the world.
This new deal builds on previous ones made by Hertz to increase the size of its EV fleet. That includes one made with Tesla (NASDAQ:TSLA) that will see some 100,000 of the company’s EVs added to the Hertz fleet by the end of the year.
To go along with that EV purchase, Hertz reached an agreement to add some 50,000 vehicles to Uber’s (NYSE:UBER) ride-hailing service as well. This has it planning to fill that order with Tesla’s and its set to do so by the time 2023 rolls around.
Stephen Scherr, CEO of Hertz, said this about the deal sending HTZ stock higher today.
“By working with EV industry leaders like Polestar, we can help accelerate the adoption of electrification while providing renters, corporate customers and rideshare partners a premium EV product, exceptional experience and lower carbon footprint.”
HTZ is up 4.3% as of Monday morning but is still down 11.1% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.