“…I would like to stress that no contracts have been signed yet,” tweeted Elon Musk
Tesla Inc top boss Elon Musk said the company had not signed a contract with Hertz, more than a week after the car rental firm announced a massive deal with the electric carmaker.
Shares of Tesla fell four percent in early trading on Tuesday, following a sharp jump following news of the largest order ever — 100,000 electric cars for Hertz — on October 25, which gave Tesla $1 trillion in market capitalization. helped in the breach.
“If any of this is based on Hertz, I would like to emphasize that no contracts have been signed yet,” Musk tweeted late Monday.
“The Hertz deal has zero impact on our economics.” Tesla did not immediately respond to a request for comment. However, Hertz said in a statement that Tesla deliveries have already begun.
“We are seeing very strong early demand for Tesla in our rental fleet, which reflects market demand for Tesla vehicles.”
Hertz interim chief executive Mark Fields told Reuters last week that the order would primarily cover Model 3 vehicles. Prices for Tesla’s most affordable Model 3 sedan start at around $44,000, an order that could be worth about $4.4 billion if the entire order was for mass-market sedans.
“Tesla has far more demand than it produces, so we will sell cars to Hertz only for the same margin as consumers,” Musk said.
Separately, Tesla is recalling about 12,000 U.S. vehicles sold since 2017 because of a communication error that may have resulted in false forward-collision warnings or unexpected activation of the automatic emergency braking system, the National Highway Traffic Safety Administration said.
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