Tesla and Hertz are continuing to negotiate a timeline for the delivery of 100,000 electric vehicles from the car rental company's initial order. Hertz expects this to happen before the end of 2022, while Tesla made it clear that the car rental company will wait for the order like any of its other clients.
Tesla Inc and Hertz Global Holdings Inc are continuing to figure out how quickly the car rental company will get supplied from its large order of Tesla electric vehicles, according to the Wall Street Journal, citing people familiar with the matter.
Hertz said last week that it had placed an initial order for 100,000 Tesla vehicles, which interim Hertz Chief Executive Mark Fields said will be primarily Model 3, Reuters reported. The company said that Tesla cars will be delivered "by the end of 2022."
According to sources, the two companies are working on the details of the deal, which will clarify the timing of deliveries. Tesla will supply Hertz with the vehicles at list price, with delivery times being a key issue, sources said. Tesla CEO Elon Musk said on Twitter on Tuesday that no contract has been signed yet. He stressed that the company has far more demand than production, therefore will only sell cars to Hertz for the same margin as to consumers.
You’re welcome!— Elon Musk (@elonmusk) November 2, 2021
If any of this is based on Hertz, 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.
Hertz said it already sees a very strong demand for Tesla cars, which in fact reflects the market demand for them. "We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles," Hertz said on Tuesday.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.