Baxia Markets
November 05, 2021

Tesla has not signed a deal with Hertz

fundamental analysis top header -01

Tesla Inc's top boss Elon Musk said the company had not signed a contract with Hertz, more than a week after the car rental firm announced a massive deal with the electric carmaker.


Tesla's shares fell 4% in early trading on Tuesday, after a steep jump following the news of the biggest-ever order - 100,000 electric cars for Hertz - on Oct. 25, which helped Tesla breach $1 trillion in market capitalization.


Musk tweeted late Monday, "If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet."


"Hertz deal has zero effect on our economics."


However, Hertz said in a statement that the deliveries of the Teslas had already started.


"We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles."


Tesla Oct 29th 2021


Hertz's interim Chief Executive Officer Mark Fields had said last week the order will primarily include Model 3 vehicles. Considering Tesla's cheapest Model 3 sedan starts at about $44,000, the order could be worth about $4.4 billion, if the entire order were for the mass-market sedan.


"Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers," Musk said.


Separately, Tesla is recalling nearly 12,000 U.S. vehicles sold since 2017 because a communication error may cause a false forward-collision warning or unexpected activation of the automatic emergency braking system, the National Highway Traffic Safety Administration said.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

Subscribe by Email