Hertz, Tesla and the Perils of CEO Groupthink

Hertz introduced to a lot fanfare on Oct. 25, 2021, that it deliberate to purchase 100,000 Teslas. “Electrical autos are actually mainstream, and we’ve solely simply begun to see rising world demand and curiosity,” then-CEO Mark Fields stated. The share costs of each corporations popped, and Tesla’s market capitalization surged previous $1 trillion, exceeding the valuations of almost all conventional automakers mixed.

C-suite executives praised the announcement. “Kudos to Mark Fields and the Hertz group for steering an ideal American model into the electrical and linked future,” Ford CEO Jim Farley tweeted. Hertz had emerged from Chapter 11 chapter only some months earlier. It was betting on electrical autos to energy its revival.