Elon Musk says Hertz hasn't signed a contract to buy Teslas yet

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Don't forget, you have to sign on the dotted line before you pick up your rental car.

A stock image of a Tesla vehicle. (iStock / iStock)

Following last week's announcement that Hertz is planning to buy at least 100,000 Teslas, which have helped boost the stocks of both brands by over 20%, Elon Musk has revealed that the companies have not yet finalized the deal.

TickerSecurityLastChangeChange %
TSLATESLA, INC.1,208.59+94.59+8.49%

"If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet," Musk responded to a tweet highlighting the recent rise in the automaker's share price.

When asked for comment on Musk's tweet, Hertz issued the following statement to FOX Business:

"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. 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."

TickerSecurityLastChangeChange %
HTZZHERTZ GLOBAL34.15+3.13+10.09%

Tesla CEO Elon Musk said the company does not yet have a contract to sell 100,000 cars to Hertz. (Patrick Pleul/picture alliance via Getty Images)

Musk had previously clarified that Hertz was not being offered the vehicles at a discount and would pay the full retail price, which would value the sale at over $4 billion.

The rental car giant initially said the deal was to buy 100,000 vehicles by the end of 2022 and later added that 50,000 of them would be provided for the use of Uber drivers.

TickerSecurityLastChangeChange %
UBERUBER TECHNOLOGIES, INC.44.36+0.54+1.23%

Hertz is promoting the addition of Teslas to its fleet with a campaign starring NFL quarterback Tom Brady. (Hertz)

Hertz said the Uber deal could be expanded to 150,000 vehicles over the next three years, but told Reuters that "these ambitions could be affected by factors outside of its control, such as semiconductor chip shortages or other constraints."

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Hertz has filed to issue a public offering of an unspecified number of shares during the fourth quarter of 2021.

This story has been updated with comment from Hertz

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