Musk says no signed contract yet with Hertz, despite order of 100,000 Teslas

Elon Musk said Tesla Inc. hasn’t yet signed a contract with Hertz Global Holdings Inc., despite the car rental company last week announcing a record order for 100,000 Model 3 sedans for $4.2 billion.

Musk was replying to a tweet from an account named Tesla Silicon Valley Club, which showed a chart of Tesla’s rising stock price along with a thank you to the company’s chief executive officer, the world’s richest person.

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.
— Elon Musk (@elonmusk) November 2, 2021

News of Hertz’s order on Oct. 25, only around four months after the company emerged from bankruptcy, sent Tesla’s shares up 13% on the day and its market value past $1 trillion for the first time. The rally has continued, with the stock closing at a record high in New York Monday. Hertz, which trades over the counter ahead of a relisting on the Nasdaq Stock Market, has climbed 38% since the start of last week.

The order for 100,000 vehicles is equivalent to about a tenth of what Tesla can produce annually. Florida-based Hertz said it would be paying full price.

“The initial interest is exceeding our expectations,” Hertz’s interim CEO Mark Fields said last week as traffic to the company’s website soared, especially for its Tesla rental portal. “It shows that our message got through.”

Hertz has hired seven-time Super Bowl-winning quarterback Tom Brady to star in advertisements showcasing the new Teslas.

Calls to Hertz representatives in Asia weren’t immediately answered.