Late Monday, after Tesla, reached $1 trillion in recent market capitalization Musk replied. Stated, “If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.” Then added, “Hertz deal has zero effect on our economics.”
More than after a week Hertz announced that they ordered from Tesla, Elon Musk tweets that they haven’t signed the deal. After the initial announcement, share value surged evaluating the company to be a $1 trillion-dollar company in the market capitalization. After Musk’s reply saying that they didn’t sign the deal, shares fell by 2% on Tuesday.
It was the biggest order ever, where Hertz ordered 100,000 Tesla vehicles from Tesla. Hertz said in a statement that the deliveries of Teslas have already started. Stating “We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles.”
Last week Hertz’s interim Chief Executive Officer Mark Fields announced the order details. Stated that the order mostly contained ordering Tesla’s cheapest vehicle Model 3, which costs about $44,000. The order is known to be worth around $4.4 billion. Talking about giving no discounts, Musk stated, “Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers,”
Recalling 12,000 vehicles
There are times when other companies like General Motors had to recall EVs multiple times. It was often compared to Tesla vehicles not needing a recall. That changes now as Tesla has to recall 12,000 vehicles due to a miscommunication caused by an error with the braking system.
This applied to the vehicles that were sold since 2017 and may have a false forward collision warning or unexpected activation. Precisely it is about 11,704 Model X, S, Y, and 3 that need the recall. NHTSA stated, “uninstalled FSD 10.3 after receiving reports of inadvertent activation of the automatic emergency braking system” and then “updated the software and released FSD version 10.3.1 to those vehicles affected.”
NHTSA asked Tesla why the company didn’t address the issue earlier. While Tesla stated that the issue was because of a software communication disconnect between two chips on the board. It could produce “a negative object velocity detections when other vehicles are present.” Tesla added that it was not aware of any crashes or injuries related to the issue. Later the company added that they halted FSD updates on such vehicles and disabeled FCW and AEB. Not long ago the company had it’s up and now is going down in various aspect. There is no saying of how the company sales are going to be affected by the end of the year.
