No Hertz Deal With Tesla

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No Hertz Deal With Tesla

Elon Musk downplays Tesla deal with Hertz

Rental car company Hertz announced lately a deal has been made with Tesla for an order of 100,000 vehicles for the year and this led to a sharp jump of 12.6 percent in the share prices of Tesla. No such deal has been signed by the two companies, said Tesla chief Elon Musk.

However, Hertz spokeswoman later confirmed that an order of 100,000 units has been initiated while the company is investing in infrastructure across its global operations to accommodate charging stations for the electric vehicles. Without adding further details, she declined to confirm whether a contract has been signed with the EV giant.

Electric vehicles are entering the mainstream and a rise in global demand is being witnessed. Hertz claims to be paying $4.2 billion for the total order of Model 3s and expects the deliveries to be complete in the next 14 months. It added that customers would be facilitated to rent a Tesla-made EV from early November.

Meanwhile, Tesla insists no such contract has been made with Hertz and the company is pregnant with huge demand that is eclipsing the production. Musk tweeted that cars will be sold to Hertz at the same price as it is sold to consumers and any deal with the rental company would have no effect on their economics.

Tesla crossed the $1 trillion market value on October 25 and is only behind four others - Alphabet, Amazon, Microsoft and Apple.

Musk added that Tesla is now having a production ramp issue and not facing any demand problem.

Meanwhile, Tesla lately announced to be launching supercharger stations to make it available to all EV models in the Netherlands. The company simultaneously had to recall more than 12,000 vehicles due to software problems that faked collision warnings.

It is not yet understood why Tesla boss is playing down the deal even though it surged the share price. Probably, the company does not want Hertz to scoop the media mileage after recently emerging from bankruptcy.

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