Tesla Didn’t Sign a Deal with Hertz: Elon Musk

100,000 Tesla Model 3s Electric Vehicles Have Been Ordered by Hertz for Their Global Operation

It has been stated by Elon Musk that no contract has been signed with Hertz after the rental car firm has made a public announcement that a deal has been signed with Tesla, which has caused an increase in the market value of Tesla has surpassed $1 trillion. In the previous week, the market shares of Tesla have jumped about 12.6% after the announcement of an alleged deal with Hertz, as the rental firm had made an order to buy 100,000 Tesla vehicles by the end of the year 2022.

However, it has been tweeted by Elon Musk that he would like to emphasize that no deal with Hertz has been signed and confirmed yet. Although, on the other side, Hertz has made a public statement in which they have established that the deliveries of Tesla vehicles ordered by them have already begun to arrive.

A spokesperson for Hertz stated that as the firm has already made an announcement in the previous week, the deal with Hertz and Tesla has been made with an initial order comprising of about 100,000 electric vehicles from the electric automotive firm, and is currently making major investments in the new electric vehicle changing infrastructure throughout the global operations of the rental car firm.

Hertz has refused to provide a valid confirmation of the news that whether an official contract has been signed with Tesla, in light of the recent tweet posted by Elon Musk, adding that they were unable to discuss the details of their business associations or negotiations.

Massive electric vehicles deal

The deal with Hertz had been announced in the last week of October by the rental car company with Tesla, which has been the largest ever rental car order placed by any firm for electric vehicles. The interim boss of Hertz, Mark Fields, said that electric vehicles are now becoming mainstream, and the firm is only just started to see the rising interest and demand across the globe.

It has been reported that Hertz would be paying Tesla $4.2 billion for about 100,000 Tesla Model 3s electric vehicles over the course of the next 12 months, by the end of the year 2022, which amounts to around one-fifth of their entire fleet globally. It is also being expected that the rental car company is likely to make an entire network of stations with electric car chargers comprising numerous charging stations where the Tesla EV cars would be used.

It has been stated by Hertz that the firm would be starting in the early days of November and would be expanding over a large area through the next year, and their customers would easily be able to rent a Tesla Model 3s vehicle at Hertz airport along with other neighborhood locations present at specified areas throughout the United States and Europe as a massive deal with Hertz has been made by Tesla, which is yet to be fully confirmed from both companies.

Elon Musk has posted a tweet on Monday which has emphasized that no deal with Hertz has been signed yet, as Tesla is currently facing challenges of an increased influx of demands as compared to their production output; therefore, the electric car firm would only be selling the vehicles to Hertz with a similar margin as to other customers.

He further added that the deal with Hertz has zero effect on the economics of Tesla, as there has been a rise in the stocks of the firm recently.

Increased stock value

Tesla has become the fifth firm across the world to be able to surpass the $1 trillion market value on October 25, 2021, and is now behind other leading firms, including Apple, Amazon, Google parent company Alphabet and Microsoft.

While giving a response to a tweet regarding the Tesla deal with Hertz, Elon Musk shared his opinion that he finds it strange that Tesla has an increase in market value, as the firm is currently extremely suffering from a problem in production ramp, and not a demand issue. He further added that to clear any spread of misinformation that the electric vehicles by Tesla that would be sold to Hertz would be on the current market price that is being offered to other customers, and no discount has been given to the rental car firm for their huge vehicle order.

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