Tesla shares under pressure: According to Musk, Tesla has not yet signed a contract with Hertz

Tesla boss Elon Musk caused confusion with a tweet about a big deal with the car rental company Hertz.

No contract has yet been signed for Hertz’s plan announced last week to buy 100,000 Tesla electric cars for the rental fleet, Musk wrote on Twitter. Hertz then confirmed that they had placed an initial order for 100,000 cars. “The delivery of the Teslas has already started,” said a spokesman on Tuesday.

The car rental company, which only came out of bankruptcy in the summer, announced an order for 100,000 Teslas by the end of 2022 last week. It was also said that the first Teslas would be available at rental stations in the USA and selected European cities as early as the beginning of November. “We see a very strong demand for Teslas in our rental car fleet,” emphasized the Hertz spokesman.

Tesla shares rose sharply after the announcement, and the value of the electric car manufacturer exceeded the one trillion dollar mark for the first time on the same day. The jump also cemented Musk’s top position in the ranking of the richest people in the world. After Musk’s tweet, Tesla shares initially fell a little more sharply to record levels, but quickly recovered. Around 15 minutes after the start of trading, minus was only one percent.

Musk had previously tried to relativize the importance of the deal for Tesla. Among other things, he called it on Twitter “strange” that the news had moved the course – because Tesla had no demand problem, but could not ramp up production fast enough. Musk also emphasized that there would be no discount for Hertz.

Now Musk responded to a tweet in which he was thanked for the recent sharp rise in Tesla’s share price. “If any of this was triggered by Hertz, I would like to stress that no contract has been signed yet,” he wrote, affirming that the car rental company had to pay as much as consumers for the car.

A few days after the original announcement, Hertz had also added that by 2023 up to 50,000 Tesla cars should be rented to drivers who offer their services with the driver service provider Uber.

“I could imagine that Hertz would want to have some discounts at the beginning of the negotiations. But if Elon Musk agrees, Tesla would change its business model,” said German auto expert Stefan Bratzel of the German press agency. He was therefore not surprised that Musk refused discounts.

On Tuesday, Tesla shares temporarily lost 3.29 percent to $ 1,168.85 in US trading.



Bildquelle: Teddy Leung /,Josh Edelson/AFP/Getty Images,Rich Fury/Getty Images for Citi/Getty Images

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