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Elon Musk Reveals He Hasn’t Signed A Contract With Hertz

SpaceX and Tesla CEO Elon Musk has clarified on Twitter that he hasn’t yet signed a contract with Hertz Global Holdings Inc.

A few days ago, Hertz, an American car rental company, placed an order for 100,000 Teslas in the first step of an ambitious plan to electrify its rental-car fleet.

This deal became the single-largest purchase ever for electric vehicles. It represented about $4.2 billion of revenue for Tesla Inc.

Musk’s personal fortune soared to $36 Billion in a day. After the news became public, Tesla’s stock price increased to 13% and its market capitalization surpassed the $1 trillion mark.

Elon Musk Hasn’t Signed A Contract With Hertz

A Twitter user named Tesla Silicon Valley Club posted a chart of Tesla’s surging stock price. The user thanked Elon for the bullish stock.

Musk acknowledged the user by saying “You’re welcome.”

However, the Dogefather emphasized that, as of now, no contract has been signed with Hertz. He wrote that Tesla has far more demand than production, therefore they will only sell cars to Hertz for the same margin as to consumers. 

Musk concluded that the Hertz deal has zero effect on their economics.

Interim Hertz CEO Mark Fields said the company was discussing with Tesla many months ago about the purchase of the vehicles. Moreover, he described it as a great relationship and part of Hertz’s move to lead rental companies in managing large fleets of EVs.

The Teslas will be delivered over the next 14 months. Tesla’s Model 3 sedans will be available to rent at Hertz locations in major U.S. markets and parts of Europe starting in early November, as per the company.

Earlier Musk mentioned on Twitter that the cars sold to Hertz have no discount. They paid the same price as other consumers. He also found it strange that the news moved the company’s valuation.

Rahul Macwan

Rahul Macwan

A writer with a literary and cinematic appetite for highbrow matter.

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