Elon: Tesla and Hertz Have “No Contract,” Hertz Emphasizes Its 100,000 Vehicle

Elon Musk has clarified that Tesla and Hertz do n’t have a inked contract, while Hertz insists that they've still nevertheless placed an “ original order” of Model 3’s. TSLA stock closed moment at its each- time loftiest valuation of rougly$1.2 trillion.

In a response to Tesla’s stock price breaking$ and posterior one-trillion- bone valuation, Elon stressed on Twitter that “ no contract has been inked yet” and emphasized that “ Tesla has far further demand than product” which equates to Tesla dealing buses to Hertz for the same price as it does to consumers. Therefore the Hertz deal has no impact on Tesla’s overall economics or indeed profit over the coming time until product capacity is formerly again suitable to meet demand.

Hertz responded with a statement attesting that the rental auto company has ordered vehicles from Tesla
.
“ Hertz has made an original order of Tesla electric vehicles and is investing in new EV charging structure across the company’s global operations. Deliveries of the Teslas formerly have started. We're seeing veritably strong early demand for Teslas in our rental line, which reflects request demand for Tesla vehicles.”

There has been talk of the SEC potentially probing the deal to help request manipulation. Tesla shares fell sprucely as a result of Elon’s comment, while recovering slightly on Tuesday.

TSLA stock nevertheless closed Wednesday at$, which represents a request cap of$1.2 trilion and is only slightly off from its each- time high of$ reached just before moment.

Since the Hertz advertisement Tesla stock has experienced the largest 12- day gain ever recorded in the history of the request.

Real Talk
Elon is trying to de-emphasize the Hertz deal, as he’s been the first to find it odd how explosively impacted Tesla’s request valuation has been by an an order of vehicles.

His comment is slightly odd about how no contract has been inked yet, while Hertz is averring that they've indeed placed an order which must have been transacted with Tesla directly. It’s not clear if they're bound by Tesla’s price increases on Model 3 that passed shortly after the advertisement, as Tesla isn't furnishing a reduction to the rental auto company.

He's absolutely right that this has no impact on Tesla’s current economics; still, the request is looking to a future where electric vehicles and Tesla’s vehicles in particular come more common as the Hertz deal represents the largest purchase of electric vehicles to date by far — it’s not about the profit gained from the order.

It's inconceivable that Tesla’s stock is still going on a comber coaster lift into the stratosphere, and it may continue reaching new heights anyhow of any deals or adverts that would else move the stock.

The nethermost line is that investors have come much more bullish on TSLA, and that’s doubtful to change for the foreseeable future.