Oct. 27, 2021—Hertz is purchasing 100,000 Tesla Model 3’s for its rental fleet, NPR reported.

By the end of next year, electric vehicles will make up more than 20 percent of Hertz's global fleet, the report states. Rentals will start as soon as next month. 

Bloomberg reported that Hertz would be paying approximately full price for the Teslas, citing descriptions of the total value of the transaction from sources familiar with the matter.

Hamzah Mazari, who tracks the rental car industry for Jefferies, told NPR the move carries some risks for Hertz, like the cost of investing in charging infrastructure. But it could bring big rewards, especially if it allows the rental company to charge higher prices and still attract customers.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," Hertz interim CEO Mark Fields said in a statement.