Elon Musk admitted that Tesla has yet to sign a contract with Hertz. The Tesla CEO clarified via Twitter as a response to a tweet.

Musk also emphasized that the rental car company's announcement does not affect the economics of Tesla. He also said that Tesla's demand is currently higher than the production of its electric vehicles.

Hertz previously announced that it was purchasing 10,000 Teslas, which helped Musk's electric car company reach the $1 trillion market cap. Musk, himself, earned $36 billion on the day the announcement was made.

The announcement, which was made last week, made no explicit mention of any contracts or purchase orders being signed by Hertz.

Elon Musk Admits Tesla and Hertz Haven't Signed a Contract

Elon Musk has admitted via Twitter that his electric car company has yet to sign a contract with car rental company Hertz. The car rental company previously announced that it is going to purchase 10,000 Teslas.

According to a report by Gizmodo, the clarification was made "as a response to a Twitter user called Tesla Silicon Valley Club, which sent out a graph of Tesla's stock price and thanked the billionaire."

"If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet," The Tesla CEO said in his reply on Twitter.

You’re welcome!

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.

— Elon Musk (@elonmusk) November 2, 2021

 

Musk went on to clarify that Tesla's demand is currently higher than its production and said that his company will only sell to Hertz "for the same margin as to customers."

The Tesla CEO also emphasized that Hertz's plans to purchase 10,000 electric cars does not affect Tesla's economics.

Hertz Plans to Buy 10,000 Teslas

Last week, Hertz announced that it is planning to order 10,000 Teslas from Elon Musk's company by the end of 2022. Due to the announcement, Tesla's stock prices shot up in value.

But did Hertz ever say in its announcement that it has already signed a purchase order for its planned 10,000 Tesla order? According to Gizmodo, the rental company made no mention that it had signed any purchase order when it made the announcement.

Related Article: Hertz to Allow Renting of 50,000 Tesla EVs For Uber Drivers

Tesla Surpasses $1 Trillion Market Value

Hertz's announcement last week helped push Tesla past the $1 trillion market value. It is a feat that only a few companies have achieved. Other companies that have passed that market value include Apple, the first company to do so, and Mark Zuckerberg's Facebook.

According to the Gizmodo report, Elon Musk made $36 billion on the day Hertz made its announcement due to the stock price of Tesla shooting up.

Per the report, the Tesla CEO's current net worth is at $335 billion.

Read Also: Elon Musk Challenges UN WFP Director to Release Data, After Saying CEO's Money Can Solve World Hunger

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Written by Isabella James