Musk Says Tesla Hasn’t Signed Massive Car Contract With Hertz

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Harry Wilmerding Contributor
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Tesla Chief Executive Officer Elon Musk said the company had not signed a deal with Hertz after the rental car company announced it was ordering 100,000 Teslas.

“I’d like to emphasize that no contract has been signed yet,” Musk tweeted Monday night.  “Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers. Hertz deal has zero effect on our economics,” Musk added.

Hertz announced on Oct. 25 that it ordered 100,000 Teslas, paying $4.2 billion, making it the largest recorded purchase of electric vehicles. Hertz stands by its announcement, and deliveries have already started, a company spokeswoman told the Daily Caller News Foundation Tuesday.

“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations,” the Hertz spokeswoman told the DCNF

“We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles,” the spokeswoman added.

Tesla did not immediately respond to the Daily Caller News Foundation’s request for comment. (RELATED: Humanitarian Group Pressuring Elon Musk For Money Is Already Flush With Cash)

Tesla’s market capitalization surged to $1 trillion after the initial announcement of the purchase. The company’s stock has soared in recent years, taking less than two years for its market cap to jump from $100 billion to $1 trillion, the WSJ reported.

Tesla shares dropped more than 3% Tuesday morning after Musk announced that no contract with Hertz had been signed, the WSJ reported.  Hertz shares have increased 38% since the Tesla deal with announced, and the company previously filed for bankruptcy in May 2020.

Hertz announced on Oct. 27 that they will team up with Uber to provide 50,000 Teslas for the ride-sharing company by 2023, the WSJ reported.

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