News of the deal brought Tesla's stock to a new record high just one trading day after the shares topped $900.
The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the coronavirus pandemic, as demand for travel and rental vehicles dropped.
News of the deal brought Tesla's stock to more than $1,045 a share midday, a new record high one trading day after the shares broke $900. The stock closed up 12.66% at about $1,024 a share.
Strong EU sales and bullish analyst calls further boosted Tesla's stock price. Morgan Stanley's Adam Jonas raised his price target on Tesla to $1,200 a share from $900 on Sunday. Jato Dynamics said Monday that Tesla's Model 3 electric sedan became the first fully electric vehicle to top new car sales overall in Europe in September.