Hertz orders 100,000 Tesla Model 3 vehicles

CNBC's Phil Lebeau joins 'Squawk on the Street' to discuss recent news that Hertz will purchase 100,000 Tesla Model 3, total value of $4.2 billion, for consumers to rent. Lebeau also reports on Morgan Stanley's recent note where the investment bank raised its price target on Tesla to $1,200. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Tesla shares soared as high as 7% Monday morning, following news that Hertz is ordering 100,000 vehicles to build out an electric vehicle rental fleet by the end of 2022.

News of the deal brought Tesla’s stock more than $975 in early morning trading, a new record-high, just one trading day after shares hit $900. The stock is currently up about almost 7%.

The deal, which will bring in a reported $4.2 billion for Tesla, is the largest ever purchase of electric vehicles, Bloomberg previously reported.

Tesla could not be reached for comment.

Bloomberg also reported the cars are slated for delivery within the next 14 months and will be available to customers in the U.S. and parts of Europe as early as November, according to the people.

The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles waned. This year, investors from Knighthead Capital Management and Certares Management said they would take over the company.

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