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Tesla’s share price takes a hit amidst confusion over landmark Hertz deal

  • Tesla share price falls by 4.4 per cent after boss Musk sparks confusion
  • Billionaire denied a deal with Hertz had been agreed, despite rental company confirming $4bn arrangement last week
  • Stock price remains more than 50 per cent up in the last month

Time 1 month ago

Tesla’s share price took a major hit yesterday amidst confusion over whether a landmark deal with Hertz has been agreed or not.

The rental company announced last week that it had reached an historic agreement with Tesla to buy 100,000 Model 3s.

The order, believed to be worth in excess of $4bn was thought to be one of the biggest single purchases of EVs ever made.

However, yesterday Tesla boss Elon Musk dropped the bombshell news that no deal has actually been reached.

The billionaire tycoon insisted that Hertz would not be given preferential treatment and said that Tesla will ‘only sell cars to Hertz for the same margin as to consumers’.

Writing on Twitter, he said: ‘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.’

The confusion has caused many Wall Street investors to turn their backs on the EV company, which recently saw its stock market value top $1 trillion for the first time.

The Times reports that Tesla’s share price fell by 4.4 per cent yesterday to $1,155.59.

However, the fall is not likely to concern bosses too much, with share prices still up more than 50 per cent since in the last month.

Hertz is still yet to comment on Musk’s latest statement.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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