Tesla has not struck a contract with Hertz, according to Elon Musk
Image credit: Editorials 24
Elon Musk insists no contract has been signed with Hertz after the rental vehicle company announced an agreement that propelled Tesla’s market value beyond $1 trillion.
Hertz stated last week that it has placed an order for 100,000 Tesla vehicles by the end of 2022, causing Tesla’s shares to rise 12.6 percent. Mr. Musk tweeted, I’d want to emphasise that no deal has been signed yet.
The Hertz-Tesla deal was the world’s largest rental car order for electric vehicles. Over the next 14 months, Hertz plans to spend $4.2 billion on 100,000 Model 3 cars, accounting for about a fifth of its fleet. In addition, the rental company would establish a charging station network.
Customers will be able to rent a Tesla Model 3 at Hertz airport and neighbourhood locations in certain areas across the United States and Europe starting in early November and continuing until the end of the year, according to Hertz.
Tesla surpassed Apple, Microsoft, Amazon, and Alphabet, the parent company of Google, as the sixth corporation to reach a market valuation of $1 trillion on October 25.
In response to a tweet about the Hertz deal on October 25, Mr. Musk said it was “interesting that they moved valuation, because Tesla’s is very much a production ramp problem, not a demand problem. To be clear, there is no discount for automobiles sold to Hertz, added later. Consumers are charged the same amount.”
It isn’t the first time that Mr. Musk’s tweets about his company have made the news. In May 2020, he slashed the value of the carmaker’s stock by $14 billion (£11 billion) after tweeting that it was too pricey.
Mr. Musk agreed to have all future posts on the site pre-screened by attorneys after a tweet on Tesla’s future on the New York stock exchange resulted in the company being fined $20 million by authorities two years ago.
Tesla announced on Tuesday that a 10-station “supercharger” trial will begin in the Netherlands on March 31st, open to all electric vehicle (EV) models. As part of its charging network development plans, the company stated that opening up its charging stations to non-Telsa drivers was necessary for large-scale EV adoption.