Last week, Hertz was in the news after it announced that it had placed an order of 100,000 electric vehicles from Tesla to add to its rental car fleet but according to Elon Musk, the founder of Tesla company, the deal isn’t actually finalized yet.
The announcement of the massive order saw a huge spike in Tesla shares which helped the company reach $1 trillion in market capitalization. It also helped Musk get richer, $36 billion dollars richer to be exact but now Musk’s tweet seems quite contrary to Hertz’s statement and people don’t know who to believe anymore.
According to Gizmodo, if you carefully look over Hertz’s statement about the buying of electric vehicles from Tesla, you will notice how the company doesn’t imply it’s finalized yet as many stockholders mistook it to be which resulted in an increase in market shares of Tesla. “As consumer interest in electric vehicles (EV) skyrockets, Hertz today is announcing a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world. This includes an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company’s global operations,” read the official statement by Hertz.
As it is clearly seen from the above announcement, Hertz never actually said it had ordered the Teslas, just that an initial order for the EV company was a part of its 2022 plan which it will soon work on in the future. This clearly translates to, We will purchase Teslas AFTER we have an official deal with them.
“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations,” a Hertz spokesperson told Gizmodo. “Deliveries of the Teslas already have started. We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles.”
We might want to stick with the official companies’ legal teams and their announcements because sometimes Musk just tweets whatever he wants without thinking about the shares at stake!