Elon Musk shared Monday night that Tesla currently has “no contract” signed with Hertz, and this revelations reportedly caused Tesla’s stock fall as much as 4%.
According to Forbes, that tweet sets the company up to lose $42 billion in market value. The tweet that stirred this drama came after Tesla shares went up 33% after Hertz announced it was buying 100,000 of its vehicles by the end of 2022, which made it the largest Tesla order to date. But then, Musk shared that the “Hertz deal has zero effect on our economics.”
“If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet,” Musk replied to a Twitter user who showed the Tesla stock growing at an impressive rate. “Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers,” he added.
See the tweet:
You’re welcome!
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
Meanwhile, Hertz released a statement which did not directly respond to Musk’s tweet but insisted that it’s made an “initial order” of 100,000 Tesla cars and said vehicle deliveries have already started.
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