Hertz And Tesla Deal Is All Done. Well, Except For The Signing Of The Contract To Make It Official.

FILE - A Tesla electric vehicle, left, sits in a charging station at a dealership, Thursday, Feb. 18, 2021, in Dedham, Mass. Shares of Tesla tumbled around 4% in premarket trading, Tuesday, Nov. 2, after its CEO and founder Elon Musk tweeted that a deal to sell 100,000 cars to Hertz had not been signed, suggesting it was not final. . (AP Photo/Steven Senne)

News last week of the order Hertz made for 100,000 Tesla vehicles started a ripple effect of financial news and milestones. 

For instance, Tesla’s stock took off, and the valuation of the company hit the $1 trillion plateau. 

Elon Musk’s net worth skyrocketed to over $300 billion, and for the first time in years Hertz was relevant and talked about again. 

Well, there’s just one little problem with it all. The deal is not 100% official yet. 

Musk responded to a Tweet from an investor thanking him for making him money, and Musk’s response led to a 4% reduction in the Tesla stock price on Monday. 

Here’s what the Tesla CEO said. 

“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.”

Tesla stock had gone up 30% since the Hertz news and is up an incredible 71% on the year. 

Hertz is claiming that they are already getting deliveries of Tesla cars, even though the deal isn’t closed, though this bit of news Tuesday will probably play a role in wrapping it up.

The price Hertz will pay for the 100,000 EV’s is $4.2 billion. Someone at Tesla is getting one heck of a commission check soon. 

 

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