Tesla stock reaches $ 1,000 billion in deal with car rental giant Hertz – .

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Tesla stock reaches $ 1,000 billion in deal with car rental giant Hertz – .


Tesla (TSLA) has partnered with Hertz, one of the world’s largest car rental companies, to supply it with 100,000 vehicles by the end of 2022. Tesla stock has reached an all-time high, reaching a valuation of 1000 billion dollars.



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Starting in early November, customers will be able to rent a Tesla Model 3 at Hertz Airport and other locations in major U.S. markets and some cities in Europe, according to a statement from the Hertz company.

The plan also includes new electric vehicle charging infrastructure across all of Hertz’s global operations. The company installs thousands of chargers across its entire location network. And customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations in the United States and Europe.

“The new Hertz will lead the way as a mobility company, starting with the largest rental fleet of electric vehicles in North America and a commitment to grow our fleet of electric vehicles and deliver the best rental experience. and charging to leisure and business customers around the world, ”said Mark Fields, interim CEO of Hertz.

With the current order, electric vehicles will represent more than 20% of Hertz’s global fleet. The company expects Tesla to be available in 65 markets by the end of 2022 and more than 100 markets by the end of 2023. But Hertz said chip shortages or other constraints could slow down deployment.

Wedbush analyst Daniel Ives said the deal, the largest of its kind, is worth $ 4.2 billion. He added that this is “a major feather for Tesla and indicates where the demand in the transformation of electric vehicles that is hitting the automotive sector on a global scale is heading.”

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The shares rose almost 11% to 1,005.64 in the stock market today. TSLA stock has now passed a valuation of $ 1,000 billion.

Tesla’s stock is also now extended from a buy point of 900.50 from a mug handful, according to MarketSmith. Shares jumped 7.9% last week, their ninth consecutive weekly gain, hitting a new high on Friday.

Tesla’s line of relative strength has increased and is returning to all-time highs. Its RS rating is 93 out of a possible 99, while its EPS rating is 70. With a composite rating of 98, Tesla ranks # 1 among the IBD group of automakers. Tesla is an action in the ranking.

Among US-based automakers with a growing supply of electric vehicles, General Motors (GM) fell 0.3% and Ford (F) fell 1.7%. GM and Ford, which are close to points of purchase, release their results on Wednesday.

Lucid engines (LCID), which will begin deliveries of its luxury Lucid Air EV this week, climbed 12%, offering early entry and approaching an official breakthrough.

Tesla’s rivals based in China Xpeng (XPEV) jumped 11% to 47.94, briefly breaking a base buy point of 48.08. Nio (NIO) rose 6%, still below its 50-day line. Li Auto (LI) gained 5.6%, rushing towards its own point of purchase. BYD Co. (BYDDF) advanced 5.2%, hitting a new high and expanding further and further since its recent breakout.


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Tesla share: Morgan Stanley raises its price target

Morgan Stanley on Sunday raised its price target for Tesla to $ 1,200 from $ 900. In a note to customers, Adam Jonas highlights Tesla’s better-than-expected third quarter results, despite chip shortages.

Jonas says he expects Tesla manufacturing to step up a gear in the coming years as its Austin and Berlin factories come online.

“By 2030, we are increasing our unit forecast from 5.8 million to 8.1 million,” he wrote. This is due to the decline in ASPs and the significant expansion of factories worldwide, beyond Austin and Berlin, which we expect over the next decade, with India likely next to be ordered. of the day, ”he wrote.

However, many others have expressed doubts about Tesla’s expansion in India, given that country’s lack of infrastructure investment. The majority of Indian roads are unsuitable for Tesla driving.

Jonas also wrote that he expects the company “to invest cost savings and efficiencies in product pricing and capacity as leverage to drive revenue growth.” .

Still, Tesla hiked the prices of four of its electric vehicles over the weekend, according to Electrek. Model 3 and Y vehicles cost $ 2,000 more, while Model S and X cars cost $ 5,000 more.


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FSD deployment hits a major slowdown

Meanwhile, Tesla has had a bumpy rollout of its latest software update for fully autonomous driving. FSD 10.3 was supposed to be available on Friday for drivers with safety scores of 99/100 or better.

But on Saturday, Tesla CEO Elon Musk tweeted that the post would be delayed until Sunday, due to “regression in some left turns at traffic lights.”

Then on Sunday, when Tesla drivers flooded Twitter with even worse issues, including emergency braking for no apparent reason at high speeds on the freeway, Musk tweeted that the deployment would be halted.

He tweeted, “Seeing some issues with 10.3, so going back to 10.2 temporarily. However, some Tesla owners seemed to say the rollback was not to 10.2 but to a production version with no FSD beta at all.

On Monday morning, Musk tweeted that Tesla was deploying FSD Beta 10.3.1.

The National Highway Traffic Safety Administration is investigating 12 crashes in which Tesla vehicles with autopilot engaged collided with emergency vehicles at the crash scene.

Tesla partially responded to a request for information from the agency due on October 22. At the same time, Tesla has made a broad request for confidentiality, according to a letter sent to NHTSA.

If the request is granted, the public would be largely left in the dark about the agency’s investigation into the safety of Tesla’s autopilot. NHTSA asked Tesla why it hadn’t issued a recall when it learned of major issues that required a software update.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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