Last week, Hertz announced that it had placed an order with Tesla for 100,000 electric vehicles to add to its rental car fleet, but Tesla founder and CEO Elon Musk tweeted this week that the agreement is not yet finalized.
The announcement of the order sent Tesla shares soaring, helping it become part of the small club of publicly traded companies with a market cap of $ 1,000 billion.
And even though the announcement helped make Musk $ 36 billion in a single day, Musk’s tweet appears to contradict Hertz’s statement.
While this is all based on Hertz, I would like to point out that no contract has yet been signed.
Tesla has a lot more demand than production, so we will only sell cars to Hertz for the same margin as to consumers.
The Hertz agreement has no effect on our economy.
– Elon Musk (@elonmusk) November 2, 2021
As Gizmodo points out though, if you go back and read Hertz’s statement, you can see that the company hinted that the deal was not as final as it looked and many shareholders probably assumed:
As consumer interest in electric vehicles (EVs) soars, Hertz today announces a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world. This includes an initial order for 100,000 Teslas by the end of 2022 and new electric vehicle charging infrastructure across the company’s global operations.
Hertz never really said he ordered the Teslas, just that a first order for them by the end of 2022 was part of his plan for the future.
Hertz, however, informed Gizmodo that an order had been placed and electric cars were already being delivered.
âAs we announced last week, Hertz has placed an initial order for 100,000 Tesla electric vehicles and is investing in new electric vehicle charging infrastructure across the company’s global operations,â Hertz said. . spokesperson told Gizmodo.
âTeslas deliveries have already started. We are seeing very strong early demand for Tesla in our rental fleet, which reflects the market demand for Tesla vehicles. “
So it’s not at all clear what’s actually going on here, but given Musk’s mercurial nature when it comes to his Twitter account, it might be best to use official company statements that have been verified by legal teams.