The electrical pioneer emphasizes: The major contract from Hertz has not yet been signed.
(Photo: AP)
new York The announcement at the end of October alone fired the imagination of investors. Hertz, according to a statement from the car rental company, will buy 100,000 Tesla Model 3s worth $ 4.2 billion. The Tesla share rose 13 percent in one day, the market value climbed to more than a trillion euros. Now Musk admits: The deal is not yet dry.
An account called “Tesla Silicon Valley Club” thanked the news platform Twitter for the enormous price increase. Musk responded by tweet: “If any of this can be traced back to Hertz, I would like to emphasize that no contract has yet been signed.”
Tesla has a much higher demand than it has been able to produce so far, the Tesla boss continues. That is why one will only sell cars to Hertz if the same margin is achieved as with other customers. Translated, this means: Hertz does not get a discount either. Typically, cars are sold to rental companies at high discounts.
Hertz announced the news of the purchase of the 100,000 Tesla on October 25th and promised its own investors to fully electrify the fleet in the coming years. That had not only spurred Tesla shares. The car rental company, which has only just escaped bankruptcy proceedings, has also gained 38 percent in value since the beginning of last week.
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Because the scope of the job seems enormous. 100,000 cars are about a quarter of the capacity Tesla can produce per year. The interest of customers is overwhelming, emphasizes Hertz boss Mark Fields. The corresponding website of the car rental company is well visited. “That shows that our message got through.” Hertz had advertised the new Teslas in the fleet with, among other things, US football star Tom Brady.
More: Major order from Hertz: Why Tesla is now worth a trillion dollars