Shares of Hertz Global Holdings were trading up 10% earlier this week after the car rental company sealed a deal with the Swedish electric vehicle (EV) maker, Polestar.
Late last year, the Florida-based company announced a similar deal with Tesla.
Hertz said it will buy 65,000 electric vehicles from Polestar over the next five years. Discussing the announcement on CNBC, Hertz 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.”
EVs are now set to become a part of Hertz’ fleet in Europe and North America before the end of 2022.
According to Thomas Ingenlath, CEO of the Swedish EV start-up, the agreement with Hertz is valuable and “not” just in terms of the boost to revenue.
“It’s a great opportunity for customers to experience a Polestar,” he said.
“ 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 units and expects that number to grow by ten folds by the end of 2025.
Some observers also expect that the Swedish company could go public later this year.