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Elon Musk says Tesla has not signed a contract with Hertz yet, despite news of the order for 100,000 cars pumping up shares and Musk's fortune

Elon Musk says Tesla has not signed a contract with Hertz yet, despite news of the order for 100,000 cars pumping up shares and Musk's fortune
Elon Musk says Tesla has not signed a contract with Hertz yet, despite news of the order for 100,000 cars pumping up shares and Musk's fortune
Hertz said last week it is ordering 100,000 Teslas, but Tesla CEO Elon Musk said he would "like to emphasize that no contract has been signed yet."
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  • Tesla CEO Elon Musk said the electric vehicle company has not signed a contract with Hertz yet.
  • The car rental firm said last week it's buying 100,000 Tesla vehicles.
  • A Hertz spokesperson told Insider that deliveries from the order have already begun. 

Tesla CEO Elon Musk said Monday night that his electric-vehicle company has not signed a contact with Hertz yet — a week after the car rental company announced an order for 100,000 Teslas.

News of the order sent Tesla stock soaring and made Musk the first person ever to be worth $300 billion. He is now three times richer than Warren Buffet.

Musk was replying to a tweet from the "Tesla Silicon Valley Club" account which showed a chart of rising Tesla share prices. "Thank you @elonmusk" the tweet added.

In response, Musk said he would 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," Musk added. "Hertz deal has zero effect on our economics."

 

A Hertz representative did not directly address Musk's tweet, telling Insider in an email that the firm "has made an initial order of 100,000 Tesla electric vehicles" and that deliveries have already begun. 

"We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles," they said. 

Musk said last week Tesla didn't give Hertz a discount on its order, and that the firm would pay consumer rates for the vehicles. 

Shares of Tesla fell about 4% in early trading Tuesday following Musk's tweet. 

Tesla did not immediately respond to Insider's request for comment.

Read the original article on Business Insider
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