Tesla Inc Chief Executive Elon Musk said the company has yet to sign any contracts with Hertz, more than a week after the car rental company announced a major deal with the electric vehicle maker.
Shares of Tesla fell more than 2% at noon Tuesday, following a sharp rise following the news of the largest order in history – 100,000 electric cars for Hertz – on October 25, helping the electric vehicle maker to exceed a trillion dollars in market capitalization.
Musk tweeted Monday night: “I would like to emphasize that no contracts have been signed yet. The Hertz deal has no effect on our economy. “
Tesla did not immediately respond to a request for comment.
However, Hertz said in a statement that Teslas deliveries had already begun.
“We are seeing very strong initial demand for Teslas in our rental fleet, reflecting market demand for Tesla vehicles.”
Hertz Acting Chief Executive Officer Mark Fields had told Reuters last week that the order will primarily include Model 3 vehicles. Considering that Tesla’s cheapest Model 3 sedan starts at around $ 44,000, the order could cost about $ 4.4 billion, if the whole business was for the sedan.
“Tesla has a lot more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers,” Musk said.
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