What can put a halt to a stock market rally? Elon Musk sent just a single tweet.
What can put a halt to a stock market rally? That's right, an Elon Musk tweet.
Tesla's stock has risen since Hertz, the world's largest car rental company, said just over a week ago that it planned to buy 100,000 Teslas for its fleet.
Tesla's market cap surpassed $1 trillion for the first time as a result of the strong rise.
However, Tesla shares fell in early New York trading on Tuesday after Musk tweeted late Monday that "no deal has been signed yet" with Hertz. He also stated that demand for Teslas continues to exceed supply, and therefore Hertz would not be eligible for a rebate on its bulk order.
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.
Musk's tweet came in response to one sent out by the Tesla Silicon Valley Club on Monday, which displayed a price chart of Tesla stock rising and the words "Super $tsla stonks." @elonmusk, thank you."
Hertz, for one, responded to Musk's post on Tuesday by stating that its plan to purchase Teslas is still on track and that it has already received deliveries.
"As we announced last week, Hertz has placed an initial order for 100,000 Tesla electric vehicles to be delivered by the end of 2022 and is investing in new EV [electric vehicle] charging infrastructure across the company's global operations," the company said in an email statement to the Associated Press and Bloomberg. "Tesla deliveries have begun, and consumer response to our mission to lead in electrification has exceeded our expectations."
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