Tesla shares plunge 7% after Musk announces Hertz deal has yet to be signed

 Tesla, a US electric vehicle company, is down 5.5% at $ 1,142.4 per share at the time of writing on NASDAQ. At its peak, the company's stock was down 7% to $ 1,122. This happened after the head of Tesla Elon Musk announced that the contract with Hertz for the supply of a large batch of electric vehicles has not yet been signed.



We will remind, earlier the service of renting electric vehicles Hertz Global Holdings announced a record order for 100 thousand electric vehicles with a total value of about $ 4.2 billion. Now it became known that this contract has not yet been signed by the parties. “I would like to emphasize that the contract has not been signed yet. Tesla is much more demanding than manufacturing, so we will only sell Hertz cars at the same margins as regular consumers. The Hertz deal has no impact on our ecosystem, ” Elon Musk wrote on his Twitter page.


You’re welcome!

If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.

Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers.

Hertz deal has zero effect on our economics.

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— Elon Musk (@elonmusk) November 2, 2021

Hertz announced an order for 100,000 Tesla electric vehicles last week. Against the backdrop of this news, Tesla shares rose 13% in just a day, and the automaker's market capitalization exceeded $ 1 trillion for the first time. Tesla shares closed at an all-time high of $ 1208.59 per share in New York trading on Monday. Note that 100 thousand electric vehicles is about a tenth of the total number of cars that Tesla can now produce in a year.

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