Elon Musk ends Tesla rally (TSLA), says Hertz deal unsigned and not a big deal – .

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Elon Musk confirms Tesla did not give Hertz discount on 100,000 electric vehicle order, questions TSLA’s surge – .


Elon Musk put an end to the Historic Tesla Rally (TSLA) by declaring that the Hertz deal is “unsigned” and adding that he does not think it has any effect on Tesla’s economy.

Tesla (TSLA) stock has risen more than 55% in the last month alone.

Most of the increase came after Hertz announced that they had ordered 100,000 Tesla vehicles, then partnered with Uber to deliver 50,000 to their drivers with an option for 100,000 more.

This sent Tesla shares rising significantly.

It peaked with an 8% increase only yesterday which saw Tesla’s valuation soar to $ 1.2 trillion.

However, this morning Tesla’s rally officially came to a halt as the stock was down 5% in pre-market trading.

The significant drop comes after a tweet from Elon Musk in the middle of the night.

A Twitter user thanked Musk for the increase in the share price, and while the CEO responded by apparently accepting the credit at first with a ‘nothing’, he quickly poured cold water on the rally saying the Hertz deal shouldn’t have this. type of impact:

The CEO said that “no contracts have been signed” on the Hertz deal and that this should not have a significant effect on Tesla’s economy since production is limited:

“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 with the same margin as to consumers. The Hertz agreement has no effect on our economy.

When the rally began, Musk had previously pointed out that this would not speed up Tesla’s overall deliveries as the company is constrained by production and not by demand.

Electrek‘stake

The first part of Musk’s comment is a bit of concern since Hertz made it clear that they had “placed” an order with Tesla for 100,000 Model 3 vehicles.

They have already taken delivery of some of them.

Since Hertz did not receive any specific rebates for his order, it is possible that he went through the normal ordering process and simply put down a $ 100 deposit per car to pretend he “spent The order, which may not constitute a “signed” agreement. .

As for the second part, it is technically true, but as we discussed on the Electrek podcast last week, I think the Hertz deal has several benefits for Tesla and the wider adoption of electric vehicles beyond just adding 100,000 vehicles to Tesla’s backlog.

In the long run, once these vehicles are in service in both the Hertz and Uber fleets, it will help get more people to try electric cars and accelerate the market transition to electric vehicles.

It will also encourage other major fleet managers to think bigger when it comes to electrifying their fleets.

It’s just another signal that if you are planning to buy a new car, like Hertz, you should be thinking about buying an electric car.

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