Elon Musk says Hertz hasn’t truly ordered 100,000 Tesla EVs but | Engadget

Last week, a press release from Hertz indicated that the rental firm had positioned an order for 100,000 Tesla Model 3s for its rental fleet. Late yesterday, nevertheless, Elon Musk tweeted that the order is much from agency, saying that “no contract has been signed yet,” Gizmodo has reported.

Hertz’s announcement acknowledged that it made “a significant investment to offer the largest EV rental fleet in North America… [which] includes an initial order of 100,000 Tesla’s by the end of 2022.” That launch and a report from Bloomberg, mixed with different excellent news about gross sales in Europe, could have motivated traders to push Tesla’s worth over the $1 trillion mark. 

Hertz solely left chapter 4 months in the past after being bought by distressed-debt agency Knighthead Capital Management and different companies for $6 billion. As such, saying a purchase order of 100,000 EVs valued at round $4.2 billion clearly raised eyebrows.

As Gizmodo identified, although, Hertz technically by no means stated it signed a contract or buy order for the autos. The phrase “an initial order of 100,000 Tesla’s by the end of 2022” might be taken to imply that the order itself and never the car deliveries will occur on the finish of 2022. Tesla itself by no means responded to the preliminary information. 

Musk’s tweet got here in reply to Twitter person “Tesla Silicon Valley Club,” which was thanking him for Tesla’s current inventory worth rise. He appeared to need to dampen down a few of that hype, nevertheless, stating that any Hertz deal would don’t have any influence on the corporate’s gross sales and backside line. 

“Tesla has much more demand than manufacturing, subsequently we are going to solely promote vehicles to Hertz for a similar margin as to customers. Hertz deal has zero impact on our economics.”