Home Business Tesla paid off 5 loans during the year and got Hertz’s $4.2 billion order for 100,000 vehicles

Tesla paid off 5 loans during the year and got Hertz’s $4.2 billion order for 100,000 vehicles

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Beijing time on October 27th, according to foreign media reports, the global car rental industry giant Hertz Holdings (Hertz Global Holdings) and Tesla recently reached a 100,000 Model 3 (configuration|inquiry) transaction not only for the latter The huge cash flow has also paved the way for electric vehicles to become mainstream.

According to the information released by both parties, the transaction value is as high as 4.2 billion US dollars, becoming the largest transaction in the field of electric vehicles in history and locking in about 10% of Tesla’s annual production capacity.

For Tesla, this is not only a huge order, but more importantly, it provides consumers with the opportunity to test drive the Model 3. At the same time, Hertz has captured the growing interest in electric vehicles while forming alliances with industry leaders and the most fashionable brands. Star Automotive analyst David Whiston pointed out that this is a win-win deal. Many consumers think of Tesla when they consider electric vehicles. Now if they want to rent a Tesla , They would think of Hertz.

Hertz’s new interim CEO and former Ford CEO Mark Fields said in an interview: “This is not only an opportunity to repair the business, but also an opportunity to implement a strategy that will enable Hertz to be able to work in Hyundai. The mobility sector plays a central role, and one of the company’s goals is to be the first to adopt electric vehicles.”

Investors obviously believe that this statement is more important than financial profit itself. This transaction made Tesla’s market value soar to $1.03 trillion, and Hertz, which had just left bankruptcy protection, also increased its market value by approximately $1.2 billion. Tesla’s share price rose 13% to a record $1024.86, while the car rental company’s share price also rose 10% to $27.17.

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  Hertz chose an ideal time to participate in the market

Fields said that as consumers look for alternatives to traditional internal combustion engines, Hertz will have a competitive advantage. According to data from Cox Automotive, even in the third quarter of the U.S. automotive market downturn, the sales of electric vehicles still achieved a significant growth of 60%, and EV sales accounted for 10%. In addition, a recent survey by the Pew Research Center showed that nearly 40% of the US car consumer group said that electric cars would be considered for their next purchase.

Hertz has chosen an ideal time to participate in the market. If the leaser becomes a consumer later, electric car manufacturers will also benefit from it. Whiston pointed out that experiencing through leasing is undoubtedly one of the best ways for ordinary consumers to approach electric vehicles. For consumers who are still hesitant, they may make a purchase decision after the experience.

With the expansion of factories in California and China, Tesla is mass production, and factories in Texas and Berlin will also start production this year. Analysts said that Tesla, which sold less than 500,000 vehicles last year, is expected to expand its production capacity to 1.5 million vehicles next year.

Tesla stated to shareholders in its third-quarter earnings report on October 20, “The demand for electric vehicles is continuing to undergo a structural change. The more Tesla vehicles on the road, the more people will be able to learn about electric vehicles. the benefits of.”

Tesla paid off 5 loans during the year and received Hertz's $4.2 billion order for 100,000 vehicles

  Full price transaction reflects strong demand in Tesla’s car market

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Tesla has always relied on word of mouth and completely avoided traditional advertising. The deal with Hertz this time gave the company an added benefit of using the influence of Super Bowl champion Tom Brady to promote the Model 3.

More importantly, according to Elon Musk’s Twitter introduction, although it was a large order of 100,000 vehicles, Tesla did not give Hertz special care. The tradition of selling products to leasing companies only at discounts. In fact, the lack of discounts for 100,000 large orders also reflects the strong demand in the Tesla car market to a certain extent.

It is reported that the first batch of deliveries in this deal will start next month, when this well-equipped Model 3 will be unveiled in the United States and Europe. Hertz also said that the company is deploying “thousands” of charging stations to strengthen the charging infrastructure. At that time, its leasing customers can not only use Tesla’s existing super charging network, but also use the company’s own charging facilities.

  Not bad money!Tesla has paid off 5 loans during the year

According to documents submitted by Tesla to the U.S. Securities and Exchange Commission, the company will repay a total of US$1.087 billion in loans in 2021, including a huge loan of US$614 million provided by many Chinese banks for the construction of the Shanghai Super Factory, and US$321 million. The Solar Asset Mortgage Loan.

According to documents disclosed by the SEC, the 5 loans are:

1) Solar asset mortgage loan with a total repayment amount of US$374 million;

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2) A loan from a Chinese bank in Shanghai Super Factory, with a total loan repayment of US$614 million in the second phase, and a total loan amount of US$1.4 billion;

3) SOLAR loan, repaid in January this year, without revealing the specific amount;

4) Car rental support credit arrangement, repaid in June, the amount is 32 million US dollars;

5) SOLAR revolving credit, repayable in April, with an amount of 67 million US dollars.

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