Tesla's Stock Reportedly Loses $40 Billion In Market Value After Elon Musk Tweets "No Contract Has Been Signed" With Hertz - The Shade Room

Tesla’s Stock Reportedly Loses $40 Billion In Market Value After Elon Musk Tweets “No Contract Has Been Signed” With Hertz

Elon Musk and his tweets have been in the headlines this week, and it doesn’t appear that will change anytime soon. 

Most recently, Tesla’s stock reportedly dropped by 4%, which puts it “on track to lose $42 billion in market value,” according to Forbes. 

This occurred after he tweeted about not signing a deal with Hertz that’s been in talks for some time.

In a press release, Hertz stated that 100,000 Tesla Model 3 sedans would be purchased by the end of 2022. After the announcement, Tesla reportedly became a trillion-dollar company.

The tweet read, in part, “If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.” Emphasizing the demand to production ratio, he wrote, “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.”

According to reports, though Musk tweeted no contract has been signed, Tesla has already provided Hertz with cars for their rental fleet.

“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,” Lauren Luster, director of communications at Hertz, stated.

According to CNBC, Luster didn’t give the specific of the agreement. But Luster did say that Hertz is still “on plan with its announcement last week to offer 100,000 Tesla electric vehicles by the end of 2022.”

This isn’t the first Tesla or Musk tweet to make headlines. In response to an article that stated 2% of Musk’s income would help solve world hunger, Musk tweeted that he would be open to selling his Tesla stock.

“If WFP can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it,” he tweeted.

This is a whole lot of money. Roomies, what do you think of this?


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