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.
If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.
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.
— Elon Musk (@elonmusk) November 2, 2021
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.
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.
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.