Tesla CEO Elon Musk said the company had not signed a contract with Hertz, more than a week after the car rental firm announced a massive deal with the electric carmaker
Tesla's shares fell 4% in early trading on Tuesday, after a steep jump following the news of the biggest-ever order - 100,000 electric cars for Hertz - on Oct. 25, which helpedMusk tweeted late Monday, "If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet."Tesla did not immediately respond to a request for comment.
Hertz's interim Chief Executive Officer Mark Fields had told Reuters last week the order will primarily include Model 3 vehicles. Considering Tesla's cheapest Model 3 sedan starts at about $44,000, the order could be worth about $4.4 billion, if the entire order were for the mass-market sedan. "Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers," Musk said.
Separately, Tesla is recalling nearly 12,000 U.S. vehicles sold since 2017 because a communication error may cause a false forward-collision warning or unexpected activation of the automatic emergency braking system, the National Highway Traffic Safety Administration said.Our Standards:Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
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