Shares of Hertz, Uber and Tesla all rallied on the news.
The program will allow Uber drivers in Los Angeles, San Francisco, San Diego and Washington, D.C. to rent Teslas beginning Nov. 1. Nationwide expansion will shortly follow.
The rentals will allow Uber drivers to offer rides for more hours and more miles. Research suggests drivers realize three to four times greater emissions savings than average car owners, according to Uber.
Rentals will begin at $334 per week and drop to $299 or lower once the program is fully underway. The cost includes insurance and maintenance.
"With the flagship Hertz deal earlier this week kicking it off, this Uber partnership is the largest expansion of EVs on a mobility platform in North America," said Wedbush Securities analyst Dan Ives.
Hertz on Monday announced an initial order of 100,000 Teslas that will be delivered by the end of next year. The agreement also sets up electric-vehicle charging infrastructure across the company’s global infrastructure.
NFL great Tom Brady has signed with Hertz to showcase the vehicles.
Hertz on Wednesday also announced a partnership with Carvana Co. The deal will allow the car-rental company to utilize Carvana’s online transaction technology and logistics network to sell vehicles it no longer uses.
The recent string of deals come just weeks after Mark Fields, the former CEO of Ford Motor Co., was named Hertz’s interim CEO.