Tesla shares soared as excessive as 7% Monday morning, following information that Hertz is ordering 100,000 automobiles to construct out an electrical automobile rental fleet by the top of 2022.

Information of the deal introduced Tesla’s inventory greater than $975 in early morning buying and selling, a brand new record-high, only one buying and selling day after shares hit $900. The inventory is at the moment up greater than 6%.

The deal, which can herald a reported $4.2 billion for Tesla, is the biggest ever buy of electrical automobiles, Bloomberg beforehand reported.

Tesla couldn’t be reached for remark.

Bloomberg additionally reported the automobiles are slated for supply inside the subsequent 14 months and will probably be obtainable to prospects within the U.S. and components of Europe as early as November, in accordance with the individuals.

The deal comes greater than a yr after Hertz filed for chapter safety through the top of the pandemic, as demand for journey and rental automobiles waned. This yr, traders from Knighthead Capital Administration and Certares Administration stated they’d take over the corporate.

–CNBC’s Michael Wayland contributed to this report.