Is Hertz leading the way for EV fleets?

With gas prices at an all-time high, is the future of car rental electric vehicles?

Swedish electric vehicle maker Polestar and Hertz announced a new global partnership on April 4. According to a press release, the deal includes the purchase of up to 65,000 electric vehicles over five years.

The partnership with Polestar builds on Hertz's announcement last October to add 100,000 Teslas to its fleet. Hertz is also extending EVs to Uber drivers as a way to further accelerate electrification.

"We are excited to partner with Polestar and look forward to introducing their premium EV products into our retail and rideshare fleets," said Stephen Scherr, Hertz CEO. "Today's partnership with Polestar further builds on our ambition to become a leading participant in the modern mobility ecosystem and doing so as an environmentally-forward company. 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."

Polestar reported that it nearly tripled volumes in 2021 and anticipates more than doubling volumes again this year. Polestar expects volumes to reach 290,000 vehicles per year by the end of 2025. Polestar previously announced its intention to list on Nasdaq New York in a proposed business combination with Gores Guggenheim, Inc., which is expected to close in the second quarter of 2022.

"Polestar is committed to accelerating the move to electric mobility with a fascinating and innovative product portfolio," said Polestar CEO Thomas Ingenlath. "We are delighted that Hertz has chosen Polestar as a strategic partner on their road to electrification. The partnership with a global pioneer like Hertz will bring the amazing experience of driving an electric car to a wider audience, satisfying a broad variety of our mutual customers' short- and longer-term mobility requirements. For many of them, it may be the first time they have driven an EV, and it will be a Polestar."

Hertz will initially order the Polestar 2.

Availability is expected to begin in spring 2022 in Europe and late 2022 in North America and Australia.