After Hertz announced that Tesla had reached a $1 trillion market valuation, Elon Musk said no agreement has been made with Hertz.
Tesla’s shares rose 12.6% following Hertz’s announcement that 100,000 Teslas had been ordered by it before 2022.
Mr Musk is not. Tweet:
Hertz said to the BBC that Tesla deliveries had already begun.
One spokeswoman stated that Hertz had placed an initial order of 100,000 Tesla electric vehicle and was investing in new infrastructure to charge them.
Hertz did not confirm whether or not a contract has been signed with Tesla after Mr Musk tweeted, and added that details about business relationships and discussions were not discussed.
Tesla has yet to respond to BBC’s request.
Hertz announced last week that it had reached an agreement with Tesla to rent a car for the first time.
Mark Fields, interim head of Hertz, stated that electric vehicles have become mainstream and that there is growing global interest in them.
Hertz was reported to have paid $4.2bn over 14 months for 100,000 Model 3s, or about one fifth of its entire fleet. It would also create a network for charging stations.
Hertz stated that customers could rent a Tesla Model 3 from Hertz Airport and nearby locations in certain parts of the US or Europe “beginning in November” and continuing through the year.
If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.
Tesla’s demand is far greater than the production. We will therefore only sell Tesla vehicles to Hertz with the same margins as our consumers.
Hertz deal has zero effect on our economics.
— Elon Musk (@elonmusk) November 2, 2021
On Tuesday, Tesla CEO Musk posted: “Tesla is much more in demand than production. Therefore, we will sell automobiles to Hertz at the same margin to consumers.”
“Hertz deal has zero effect on our economics.”
Tesla, Microsoft, Amazon, Google-owner Alphabet and Apple became the fifth companies to exceed $1 trillion market valuation on 25 Oct.
Reacting to a TweetMusk stated that the Hertz deal of 25 October was “strange” because Tesla’s production ramp problems are not related to demand.
He said, later: “To make it clear, Hertz vehicles do not come with a discount. Similar price to customers.
Tesla shares are down over 4% during pre-market trades in the US.
Musk tweets about his company are not new.
In May 2020, he wiped $14bn (£11bn) off the carmaker’s value after tweeting its share price was too high.
A tweet by Tesla about the future of the New York Stock Market two years ago led to regulators fining it $20 million and Musk agreeing that all posts to the platform be prescreened by lawyers.
Tesla said Tuesday that it will launch 10 Supercharger Stations in the Netherlands. This pilot station will be open to all Tesla models.
The company stated that it was essential for widespread EV adoption to open its charging stations up to all drivers, as part of expanding its network.
Tesla also had to recall 11704 cars due to a software issue that could have caused “false forward collision warnings” and/or emergency brake events.
The US National Highway Traffic Safety Administration stated that it wasn’t aware of any injuries or crashes caused by this issue. Tesla will fix this problem by updating its software.
What is Elon Musk doing to downplay the possibility of Hertz acquiring 100,000 vehicles? The deal sounds optimistic, which appears to have sent the share price skyrocketing.
This deal could be better for Hertz and Tesla.
This car-rental company recently emerged from bankruptcy and wants to present itself as an innovative, modern business. Teslas suits the bill.
Hertz doesn’t even matter to Tesla.
The company is making vehicles as quickly as possible and says there’s no shortage of customers. Although rental firms may buy excess stock at a discounted price, Musk made clear that Hertz will have to purchase the full-priced cars if he wants them.
Tesla CEO Elon Musk has a fraught relationship with the market regulators.
Hertz’s public assertion that any deal would have “zero effect on our economy” and the fact that there has not been a contract signed yet could be taken to mean that Tesla’s value is rising – increasing his personal wealth – but it’s not because of anything that he’s said.
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