Tesla and Hertz are reportedly in the midst of a disagreement about how quickly the former can deliver the 100,000 electric cars the landlord has ordered.
Last week, Hertz announced that it had ordered 100,000 Tesla vehicles and then partnered with Uber to provide 50,000 of them to their drivers with an option to 100,000 more.
It sent Tesla shares skyrocketing until CEO Elon Musk stepped on the brakes by stating that they hadn’t “signed” a deal with Hertz.
The comment created confusion as Hertz’s original announcement clearly stated that the order had been placed.
The ongoing disagreement between Hertz and Tesla concerns delivery time, according to a new report in the Wall Street Journal.
“The two companies are working on the details of a deal that will schedule deliveries, people said. Tesla is still expected to deliver the 100,000 vehicles to Hertz at list price, with timing of deliveries being the key issue, people said.
As we reported earlier, Tesla has already started delivering Model 3 vehicles to Hertz, but in the original announcement, the rental company said it expects all 100,000 vehicles to be delivered by the end of next year.
Continue reading: Hertz orders 100,000 Teslas, largest single purchase of electric vehicles of all time, with Tom Brady campaign
According to reports, this comment did not really apply to some people at Tesla.
In a statement to WSJ and following Musk’s comment, Hertz added:
“As we announced last week, Hertz has placed an initial order for 100,000 Tesla electric vehicles and is investing in a new charging infrastructure for electric vehicles throughout the company’s global operations. The delivery of the Teslas has already started. “
Tesla is apparently not planning any special treatment at Hertz. Not only will you be paying the same price as regular customers, Tesla plans to make deliveries on schedule.
Recently, Tesla has postponed its delivery date for new orders for the Model 3 Rear-Wheel Drive, the version ordered by Hertz, to the end of 2022.
Elektreks take
Sounds like both sides could be right here.
Hertz likely ordered 100,000 Tesla Model 3 vehicles and then requested delivery by the end of next year, as Tesla is quoting just now.
Then Musk on Tesla’s side likely commented because they don’t have a contract to supply these vehicles in that timeline. It’s like a regular customer order.
I would expect updated delivery times for Model 3 vehicles in the US towards the end of 2022.
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