Tesla and Hertz are reportedly known to be working on a timeline so that Hertz can receive enough vehicles on time. However, Wall Street Journal reports that they have a certain disagreement. It is said that Hertz ordered 100,000 Tesla vehicles where most of the vehicles are Model 3 cars. This news has been on the news recently as the stock value increased helped the company to surpass $1 trillion in market value.
Later after the value of the company increased, Musk tweeted that Tesla hasn’t signed the deal yet. Which again led to a decrease in the stock value. Regardless of the fluctuations, it is confirmed that both companies are working on the deliveries. Hertz has already reported that they already started receiving the vehicle delivery. Hertz said on Monday, “We are seeing very strong early demand for Teslas in our rental fleet, which reflects a demand for Tesla vehicles.”
Alongside, Hertz has already started its advertisement on its Tesla fleet. The company website, series of YouTube commercials, and many other things include that their fleet has Tesla vehicles. In the YouTube commercials, a National Football League(NFL) was being featured. Tesla shares rose up to 2.3% in the premarket trading at $1,242. Which is known to have rallied about $350 billion to the market value.
Disagreement in the timelines
It is reported that people said that the companies are hammering out the delivery timeline details. While Tesla was appreciated for not giving a discount, the timeline wasn’t considered a possible challenge. It turns out that Hertz wants Tesla to supply the 100,000 vehicles at the list price as per their timelines. It is said that Hertz wants all the vehicles to be delivered by the end of next year.
Tesla is capable of making around 500,000 Model 3/y vehicles every year in its Fermont factory. And the Giga Shanghai factory is almost capable of making 500,000 vehicles every year. Tesla’s demand in the market is high, with many customers being on the waiting list to receive their vehicle. The most sold vehicles are Model 3 and Model Y all over the world. If Tesla has to supply 100,000 vehicles then the total sales for the company to individual customers may possibly be around 400,000 vehicles.
While Hertz might have been expecting some special treatment as they ordered in bulk, Tesla doesn’t seem to plan to do so. The company says that they plan to deliver the vehicles as per their regular timeline. It means the customers who ordered before Hertz ordered vehicles, will be receiving the cars first. Only then Hertz will start receiving its vehicles.