Hertz interim CEO explains company's massive Tesla order

Hertz interim CEO Mark Fields joins CNBC's 'Squawk Box' to discuss the company's latest order for 100,000 Model 3 cars. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Uber announced early Wednesday that Hertz, which just ordered 100,000 Teslas, will supply half of that fleet by 2023 to Uber drivers who want to rent the cars.

Uber shares were up about 2% in the premarket. Shares of Tesla rose just over 1%.

Uber said the deal is a step toward its zero-emissions goal and will offer its drivers a way to increase earnings by saving on gas costs.

Starting Monday, drivers can rent 2021 Tesla Model 3 cars through Hertz’s rental program in Los Angeles, San Francisco, San Diego and Washington, DC. It will expand nationwide in the following weeks.

The company said Tesla rentals will start out at $334 a week, excluding taxes and fees, but pricing will decrease to $299 or lower over time. Initially, the company will require drivers have at least a 4.7-star rating and a minimum of 150 trips.

“While this partnership is a step forward to advance electrification on the Uber platform, it’s important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle,” Andrew Macdonald, SVP of mobility and business operations, said in a statement.

The partnership with Uber comes on the back of a big week for Tesla. The deal with Hertz, which will bring in a reported $4.2 billion for Tesla, is the largest ever purchase of electric vehicles, Bloomberg previously reported.

That helped catapult Tesla’s market cap to $1 trillion for the first time, joining the likes of Apple and Amazon.

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