Elon Musk: No contract with Hertz yet

Tesla made headlines last week when Hertz stated it would expand its fleet of battery-electric vehicles with "an initial order of 100,000 Teslas by the end of 2022."

The news was backed by a commercial showcasing seven-time Super Bowl champion Tom Brady among parked Tesla Model 3 electric automobiles in a Hertz garage.

CNBC contacted Hertz and Tesla Monday night to request additional information. Neither corporation responded to a request for comment prior to publication.

Interim Hertz CEO Mark Fields stated last week that the rental business began discussions with Tesla about purchasing the vehicles "several months ago." He hailed it as a "wonderful connection" that is part of Hertz's strategy to become the rental industry's leader in managing huge fleets of electric vehicles.

Tesla made headlines last week when Hertz stated it would expand its fleet of battery-electric vehicles with "an initial order of 100,000 Teslas by the end of 2022."

The news was backed by a commercial showcasing seven-time Super Bowl champion Tom Brady among parked Tesla Model 3 electric automobiles in a Hertz garage.

CNBC contacted Hertz and Tesla Monday night to request additional information. Neither corporation responded to a request for comment prior to publication.

Interim Hertz CEO Mark Fields stated last week that the rental business began discussions with Tesla about purchasing the vehicles "several months ago." He hailed it as a "wonderful connection" that is part of Hertz's strategy to become the rental industry's leader in managing huge fleets of electric vehicles.

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For instance, Dan Ives of Wedbush Securities said in a bullish report about Tesla on Oct. 26:

"We believe that the Hertz deal will be viewed as a tipping point for the EV industry, as this 100k Model 3/$4 billion+ deal for Tesla signals a shift toward more widespread adoption of EVs, as only 2% of autos in the US are currently electric, compared to 10%+ in China with rapid growth on the horizon. We believe this is the most significant revolution in the car industry since the 1950s, with increasing numbers of consumers opting for electric vehicles in the future years."

Tesla's stock has risen around 33% since its Oct. 22 closing prior to the announcement.

Musk remarked last week that it was "abnormal" that the revelation increased the company's valuation by such a large amount.

Musk's net worth has increased in lockstep with the electric vehicle maker's share price. He has surpassed Warren Buffett as the world's wealthiest person.

Other shareholders, both internal and external to the firm, have benefited as well, including long-term bulls such as Ron Baron, Tesla employees who have earned and vested options over time, and Musk's fellow board members.

Two days after announcing the initial order of 100,000 Teslas, Hertz announced that by 2023, it will make up to half of its vehicles available for rent to Uber drivers. According to the corporation, if the experiment is successful, it might grow to 150,000 automobiles over the next three years.

Hertz "emphasised that these objectives may be jeopardised by external causes such as semiconductor chip shortages or other constraints."

Hertz filed for bankruptcy protection during the expanding coronavirus pandemic — but when travel recovered and demand for rental vehicles increased, investors from Knighthead Capital Management and Certares Management said they would acquire the company.

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