Tesla, Hertz negotiating over how fast 100K EVs can be delivered: report

Tesla and Hertz are negotiating how fast the electric car manufacturer will be able to deliver 100,000 vehicles to the rental company amid confusion over a recent announcement by Hertz that they would be receiving them by the end of next year, The Wall Street Journal reported.

The Journal, citing people familiar with the matter, reported that the two companies were negotiating the timeframe for when Tesla would be expected to deliver its 100,000 electric vehicles (EVs) to Hertz. Hertz is reportedly still receiving that quantity at Tesla’s list price, however.

One of the people the newspaper spoke to said that some Tesla officials had taken aback by an announcement Hertz made last week in which they claimed that they would be receiving 100,000 Tesla EVs by the end of 2022. Those officials were under the assumption that Hertz would receive roughly 10,000 each year, that person said.

Adding to the confusion, Tesla CEO Elon Musk tweeted on Monday that “no contract has been signed yet” between the two companies.

Musk also emphasized that due to the high demand of its cars, “we will only sell cars to Hertz for the same margin as to consumers,” adding that “Hertz deal has zero effect on our economics.”

You’re welcome!

If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.

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.

— Elon Musk (@elonmusk) November 2, 2021

Hertz did not address the Journal’s reporting about negotiations over when they expected to receive the EVs when asked about the matter.

“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations,” Hertz said in a statement, echoing a previous one it made on the matter. 

“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.”

The Hill has reached out to Tesla for comment.