Musk says Hertz deal isn’t signed — and questions Tesla rally after the announcement

“If immoderate of this is based connected Hertz, I’d similar to stress that nary declaration has been signed yet,” Musk tweeted successful effect to a illustration of the banal terms from the wide followed Tesla Silicon Valley Club account.

“Tesla has acold much request than production, truthful we volition lone merchantability cars to Hertz for the aforesaid borderline arsenic to consumers,” added Musk, who according to Bloomberg present has 3 times the nett worthy of Berkshire Hathaway BRK.B, -0.27% Chairman and CEO Warren Buffett. “Hertz woody has zero effect connected our economics.”

Tesla shares slipped 2% successful premarket trade.

Analysts had praised the interaction of the Hertz woody connected Tesla. The $4.2 cardinal bid was considered by immoderate a tipping constituent for electrical conveyance demand, and gives the accidental for imaginable drivers to effort retired a Tesla portion travelling.

The Hertz HTZ, property merchandise described it arsenic “an archetypal bid of 100,000 Teslas by the extremity of 2022,” implying the bid had yet to beryllium completed.

The rental institution did nevertheless accidental the concern was acold capable on that it enactment a conception connected Tesla arsenic a hazard origin successful its 10-K dated Oct. 28. It warned not conscionable of the hazard of the attraction of specified vehicles successful its fleet, but the “economics yet associated with [electric vehicles], including depreciation and residual values, which volition interaction the attractiveness of our EVs to rideshare drivers,” the institution said.