Tuesday, May 24, 2022
News Musk’s Tweet About the Hertz-Tesla Deal Cost $300 Billion

Musk’s Tweet About the Hertz-Tesla Deal Cost $300 Billion

Basically, Hertz’s “order” has no real impact on Tesla’s business

  • In brief, Musk said that Hertz and Tesla have not signed a contract.

  • Furthermore, demand for Tesla vehicles already outstrips production capabilities.

As Musk put it in his Tweet, the Hertz deal “has zero effect on our economics.” Hertz announced last week that they’d placed an order for no less than 100,000 Tesla vehicles but apparently, no actual contract was signed.

The news from Hertz sent, as always, Tesla’s stock soared by 13% and the EV company’s market value to a staggering $1 trillion. Musk tweeted shortly after the announcement that Tesla already has far more demand for its vehicles than they are able to produce. In fact, 100,000 units are roughly Tesla’s total one-tenth of its annual production capability.

Uber to Incorporate 50,000 Tesla Vehicles as Part of its Fleet

Following Musk’s Tweet, Tesla’s shares fell all of 3%. Even so, it’s important to recall that the EV car company’s stocks have rocketed 56% in the last month alone. Back on October 25th, according to Automotive News, Musk questioned the change in valuation as Tesla’s problem isn’t selling their vehicles, it’s building them.

Tesla Issues a Recall for its Autopilot Software to Comply with NHTSA

In other Tesla news, they’ve recently opened portions of their charging network to non-Tesla owners. As well, a recall has been issued pertaining to a recent FSD update.

Trending Now

Hyundai is Planning to Build up to 6 New EVs in its Georgia Factory

Hyundai recently announced it will build a new factory near Savannah, Georgia Up to six different EVs could be built there by 2028 ...

New Volkswagen ID. Buzz Priced from €64,581 In Germany

The Cargo version starts at €54,430. Pricing includes Germany’s 19% VAT but not the incentives. Pre-sales begin on Friday. We are getting closer to...

1955 Mercedes-Benz 300 SLR Coupé Sells for a Record $142 million

A private collector purchased the car from Mercedes-Benz for a record €135 million. The car is one of only two 1955 Mercedes-Benz 300...

New IIHS Side Impact Test: More Than Half of midsize SUVs Earn Good Ratings

The Mazda CX-9 and Volkswagen ID. 4 get overall Good ratings. The Nissan Murano, Kia Telluride, Hyundai Palisade, and others score a Marginal...

Mercedes-Benz to Trim Entry-Level Models to Focus on Profits

More than three-quarters of Benz’s investments will go to high-end models. AMG will greatly benefit from this move. The “A” class models will...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.