Mad Money Host Jim Cramer in Awe of Tesla Rally Following Huge Hertz Deal

Tesla (NASDAQ: TSLA) has been on quite a tear recently. Having established itself as the leader in the electric vehicle industry long ago, Tesla is taking steps to bring battery electric vehicles (BEVs) further into the mainstream. Specifically, Tesla is trying to get its cars into rental fleets.

On October 25th, Tesla announced a massive deal with rental car giant Hertz (NASDAQ: HTZ). The agreement is for 100,000 Teslas and is valued at over $4 billion. The deal is expected to be the first of multiple deals from Hertz, which is building out BEV charging infrastructure at their rental lots worldwide and has a goal of 20% of their rental fleet being BEVs.

Hertz interim CEO Mark Fields explained the company’s rationale for making a deal with Tesla, stating:

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest.  The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

The deal appears to be a significant coup for Tesla. The company says supply constraints and high demand will allow it to sell to Hertz at similar margins as it does directly to consumers. Avoiding a significant fleet discount is a major boon for Tesla, as well as the essentially free marketing they will receive by potential customers being able to rent a Tesla and try it before making a purchase.

TSLA Valuation Soars Past $1 Trillion

Tesla investors were thrilled by the Hertz deal, with the stock rocketing up 20% since the announcement and pushing Tesla’s market cap past the $1 trillion level, all the way to $1.2 trillion. Jim Cramer, the host of CNBC’s Mad Money and one of the most popular stock market commentators, was blown away by the TSLA rally.

The Mad Money host commented:

“Tesla is actually a phenomenon we have to talk about. I’ve actually never seen a stock go up endlessly on nothing.”

Whether a major deal with one of the largest car rental agencies in the world is “nothing” is up for debate, but clearly, Cramer has the company on his mind. Keeping the company in the headlines, especially on investing shows such as Cramer’s, is just fine with investors, as the stock keeps making new all-time highs.

Shares of TSLA stock closed trading today at $1,067.95, up +46.34% YTD and up +156.02% over the past year. TSLA reached an all-time high of $1,243.49 last week, with the stock cooling off a bit this week as investors cashed in their gains.

Read Next: Elon Musk Follows Through on Twitter Poll, Sells Nearly $7 Billion in Tesla Stock

Join the Discussion in the Wealthy VC Investor Group

Have a Stock Tip or News Story Suggestion? Email us at Invest@WealthyVC.com

Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.